Refer to Table 13-2. If the Hometown Bank is holding $10,000 in excess reserves, then the reserve requirement is
Table 13-2
| 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.
Ans: d) 10 percent
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