15. If a bank faces a reserve requirement of 8 percent and has areserve ratio of 12 percent, then
A. government regulation requires the bank to use at least 8percent of its deposits to make loans.
B. the bank’s ratio of loans to deposits is 8 percent.
C. the bank keeps 8 percent of its deposits as reserves and loansout the rest.
D. the bank keeps 12 percent of its assets as reserves and loansout the rest.
E. the bank keeps 12 percent of its deposits as reserves and loansout the rest.
16. According to the textbook, which of the following statements is(are) correct?
(x) A bank’s reserve ratio is 15 percent and the bank has $5,000 indeposits. Its reserves amount to $750
(y) A bank’s reserve ratio is 7.5 percent and the bank has $2,250in reserve. Its deposits amount to $30,000
(z) A bank has $348,125 in required reserves and $2,785,000 indeposits. The reserve requirement must be equal to 12.5 percent ofdeposits
A. (x), (y) and (z) B. (x) and (y), only
C. (x) and (z), only D. (y) and (z), only
E. (x) only
17. Suppose a bank has a 12.5 percent reserve requirement, $100,000in deposits, and it loans out all it can given the reserverequirement.
A. It has $1,250 in reserves and $97,750 in loans.
B. It has $12,500 in reserves and $87,500 in loans.
C. It has $12,500 in reserves and $100,000 in loans.
D. It has $87,500 in reserves and $12,500 in loans
E. None of the above is correct.
18. The reserve requirement is 10 percent. A customer deposits$2,000 into a bank. By how much do excess reserves change?
A. $2,000
B. $1,800
C. $200
D. $100
E. $0
