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Money Creation by Banks · Question 13 of 58

Question 13

EasyOriginal question

A bank has deposits of ₹800 crore and keeps reserves of ₹120 crore. Its reserve ratio is

6.7%Correct answerYour answer12%Correct answerYour answer15%Correct answerYour answer85%Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Reserve ratio = 120 ÷ 800 = 0.15 = 15%.

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

The rule this testsReserves and the reserve ratio

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