Answer:
20%
Explanation:
Given
Assets
Total reserves 4
Loans 11
Securities 5
Total 20
Liabilities and Net Worth (Billions of Dollars)
Checkable deposits 20
Total 20
Since the bank has no excess reserves then the entire reserve is required.
Reserve Ratio = Required Reserve /. Checkable Deposits
Required Reserve = Total Reserves = 4
Checkable Deposits = 20
Both in billions
Reserve Ratio = 4/20
Reserve Ratio = 0.2
Reserve Ratio = 20%
Hence,. The required ratio is calculated as 20%
