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

Respuesta :

Answer:

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.

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