Suppose that the reserve ratio is 5 percent and that a bank has $1,000 in deposits. Its required reserves are
A.      $5.
B.      $50.
C.      $95.
D.      $950.
Answer:B
Suppose that the reserve ratio is 5 percent and that a bank has $1,000 in deposits. Its required reserves are
A.      $5.
 B.      $50.
 C.      $95.
 D.      $950.
