Previous Page Question 14 (1.25 points) Suppose that the money supply in Canada is $120,000 and reserves are $24,000. Assume that people hold only deposits and no currency, and that banks hold only required reserves. What is the required reserve ratio and what is the quantity of deposits? required reserve ratio is 20 percent and deposits are $120,000 + required reserve ratio is 25 percent and deposits are $120,000 required reserve ratio is 20 percent and deposits are $96,000 required reserve ratio is 25 percent and deposits are $96,000 Previous Page Next Page Page 14 of 49 Submit Quiz 0 of 49 questions saved