Kizspy | Question: 48
(Choose 1 answer)
If a bank has a reserve ratio of 8 percent, then
A. government regulation requires the bank to use at least 8 percent 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 loans out the rest.
D. the bank keeps 8 percent of its assets as reserves and loans out the rest.
