Bank North's Balance Sheet Assets Liabilities
Reserves $300 Deposits $2000
Loans $2200 Capital $500
$2500 $2500
TABLE 26-2
Refer to Table 26-2.If Bank North receives a new deposit of $400,its actual reserve ratio immediately becomes

Question

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After a new deposit of $400, total reserves become $700 ($300 + $400), and total deposits become $2400 ($2000 + $400). The reserve ratio is calculated as reserves divided by deposits, which is $700/$2400 = 29.17%.