The reserve ratio of a bank is

the fraction of loans that are repaidCorrect answerYour answerthe interest rate on depositsCorrect answerYour answerthe fraction of deposits it keeps as reservesCorrect answerYour answerthe ratio of its branches to its customersCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Reserve ratio = reserves ÷ deposits.

Concept: Reserve ratio
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsReserves and the reserve ratio

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The reserve ratio of a bank is

Explanation