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If the Reserve Requirement is 10 percent, then what does this mean? Multiple Choice This means...

Question:

If the Reserve Requirement is 10 percent, then what does this mean? Multiple Choice This means that banks cant lend out more

If the Reserve Requirement is 10 percent, then what does this mean? Multiple Choice This means that banks can't lend out more than 10 percent of their assets. None of the statements listed above are correct. This means that banks must put 10 percent of the assets on deposit with the FDIC. This means that banks must hold 10 percent of depositors' money as cash.

Answers

Ans:-This means that bank must hold 10 percentage of depositors money as cash

Explanation:- The required reserve ratio provides the percentage of deposits that bank must hold as reserves .It is the percentage of required reserve to deposits.The required reserve ratio is 10% this means the bank must hold 10% of their deposit as required reserves

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