Multiple Choice
A bank has $50,000 in deposits from its checking account customers and loans of $49,000. Of the $49,000 loaned out, $43,000 remains in the checking accounts of the loan recipients. The bank has $50,000 cash on hand, and the reserve requirement is 25%. The reserve ratio for this bank is _____, and it _____ meeting its reserve requirement.
A) 0.002%; is not
B) 20%; is
C) 53.76%; is
D) 186%; is not
Correct Answer:
Verified
Correct Answer:
Verified
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