Hometown Bank | ||||
Assets | Liabilities | |||
Reserves | $25,000 | Deposits | $150,000 | |
Loans | $125,000 |
Refer to Table 13-2. If the Hometown Bank is holding $10,000 in excess reserves, then the reserve requirement is
a. 2 percent.
b. 5 percent.
c. 7 percent.
d..10 percent.
ANSWERE:
d..10 percent.