Simple Balance Sheet For Bank A Liabilities + Net Worth Assets $40,000 U.S. Treasury Securities (bonds, notes & bills) ? _U.S. Treasury Securities (bonds, notes & bills) $500,000 loans ? checkable deposits $20,000 cash in bank vault (note: this counts as reserves) $150,000 reserves in Federal Reserve account (note: this counts as reserves) The above balance sheet shows the assets of "Bank A." What is this bank's reserve ratio?
Simple Balance Sheet For Bank A Liabilities + Net Worth Assets $40,000 U.S. Treasury Securities (bonds, notes & bills) ? _U.S. Treasury Securities (bonds, notes & bills) $500,000 loans ? checkable deposits $20,000 cash in bank vault (note: this counts as reserves) $150,000 reserves in Federal Reserve account (note: this counts as reserves) The above balance sheet shows the assets of "Bank A." What is this bank's reserve ratio?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Simple Balance Sheet For Bank A
Liabilities + Net
Worth
Assets
$40,000 U.S.
Treasury Securities
(bonds, notes & bills)
?___ U.S.
Treasury
Securities (bonds,
notes & bills)
$500,000 loans
checkable
deposits
$20,000 cash in
bank vault (note: this
counts as reserves)
$150,000 reserves in
Federal Reserve
account (note: this
counts as reserves)
The above balance sheet shows the assets
of "Bank A." What is this bank's reserve
ratio?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c0e670a-2918-48e3-8b61-1204d22c3f04%2Fb752dd76-7a1c-4689-a55b-0a356a619090%2Fqj89jar_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Simple Balance Sheet For Bank A
Liabilities + Net
Worth
Assets
$40,000 U.S.
Treasury Securities
(bonds, notes & bills)
?___ U.S.
Treasury
Securities (bonds,
notes & bills)
$500,000 loans
checkable
deposits
$20,000 cash in
bank vault (note: this
counts as reserves)
$150,000 reserves in
Federal Reserve
account (note: this
counts as reserves)
The above balance sheet shows the assets
of "Bank A." What is this bank's reserve
ratio?
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