Refer to Table 13-2. If the Hometown Bank is holding $10,000 in excess reserves, then the reserve requirement is

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.