-The table above shows the balance sheet for Ralph's Bank. If the desired reserve ratio is 15 percent, Ralph's Bank has desired reserves of .
A) $450
B) $2,500
C) $3,000
D) $500

Question

-The table above shows the balance sheet for Ralph's Bank. If the desired reserve ratio is 15 percent, Ralph's Bank has desired reserves of .
A) $450 
B) $2,500 
C) $3,000 
D) $500

Quizplus · Accepted Answer

The desired reserves are calculated by multiplying the total deposits by the reserve ratio. If the total deposits are $3,000 and the reserve ratio is 15%, the desired reserves are $3,000 * 0.15 = $450.

-The Table Above Shows the Balance Sheet for Ralph's Bank