A bank has $113 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities are $113 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total legal reserves equal $6 million. Calculate the required reserve ratio. %. (Enter your response rounded to the nearest integer.)
A bank has $113 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities are $113 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total legal reserves equal $6 million. Calculate the required reserve ratio. %. (Enter your response rounded to the nearest integer.)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section12.3: How Banking Developed
Problem 2ST
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