Exhibit 22-1
-The data in Exhibit 22-1 shows the balance sheet (in millions of dollars) for Bank INF. Assuming the bank's reserves are what is required by law, the required reserve ratio is
A)85 percent.
B)15 percent.
C)70 percent.
D)30 percent.
E)5 percent.

Question

Exhibit 22-1 
-The data in Exhibit 22-1 shows the balance sheet (in millions of dollars) for Bank INF. Assuming the bank's reserves are what is required by law, the required reserve ratio is
A)85 percent. 
B)15 percent. 
C)70 percent. 
D)30 percent. 
E)5 percent.

Quizplus · Accepted Answer

The required reserve ratio is calculated by dividing the bank's reserves by its total deposits. If the reserves are what is required by law, the ratio is typically around 10-15% in many banking systems, making 15% the most plausible choice.

Exhibit 22-1 -The Data in Exhibit 22-1 Shows the Balance Sheet (In