Ask Question
26 August, 19:11

Assume that the following balance sheet portrays the state of the banking system. The banks currently have no excess reserves. Assets Liabilities and Net Worth (Billions of Dollars) Total reserves 5 Checkable deposits 50 Loans 25 Securities 20 Total 50 Total 50 What is the required reserve ratio

+5
Answers (1)
  1. 26 August, 19:26
    0
    10 percent

    Explanation:

    Given that,

    Total reserves = $5 billion

    Check-able deposits = $50 billion

    Loans = $25 billion

    Securities = $20 billion

    Required reserve ratio = (Reserves : Check-able deposits) * 100

    = ($5 : $50) * 100

    = 10%

    Therefore, the required reserve ratio is 10 percent.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that the following balance sheet portrays the state of the banking system. The banks currently have no excess reserves. Assets ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers