Question

if an increase of $10 million in excess reserves increases checkable deposits in the banking system by a maximum of $100 million, the required reserve ratio would be group of answer choices 0 percent. 5 percent. 10 percent. 20 percent. 2 percent.

Answer 1

The required reserve ratio would be 10 percent.

What do you mean by ratio?

A ratio shows how many times one number contains another. If a fruit dish comprises eight oranges as well as six lemons, the orange-to-lemon ratio is eight to six. Similarly, the proportion of lemons to oranges is 6:8 (or 3:4), while the proportion of oranges to overall fruit is 8:14. (or 4:7). A ratio's numbers can be any quantity, such as a count of persons or objects, or measures of lengths, weights, time, and so forth. In most situations, both numbers must be positive. A ratio can be thought of as an ordered pair of integers, a fraction with the first number in the denominator and the second in the numerator, or the value signified by this fraction.

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