The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 200 The data show that Sun Trust
A) increased its reserve ratio to 6.4 percent over the 12 months.
B) has fewer excess reserves in 2008.
C) faced a higher currency drain ratio in 2008.
D) increased its reserve ratio to 5.3 percent over the 12 months.

Question

The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 200  The data show that Sun Trust
A) increased its reserve ratio to 6.4 percent over the 12 months. 
B) has fewer excess reserves in 2008. 
C) faced a higher currency drain ratio in 2008. 
D) increased its reserve ratio to 5.3 percent over the 12 months.

Quizplus · Accepted Answer

The data shows that the reserve ratio increased from 4.7 percent in September 2007 to 5.3 percent in September 2008, indicating that Sun Trust increased its reserves over the 12 months. The data also shows that excess reserves decreased from $5,966 million in September 2007 to $2,709 million in September 2008, indicating that Sun Trust had fewer excess reserves in 2008. The currency drain ratio remained relatively stable, with a slight decrease from 0.32 in September 2007 to 0.31 in September 2008, so it does not appear to be a significant factor in the changes observed. Therefore, the best choice is D) increased its reserve ratio to 5.3 percent over the 12 months.

The Table Below Shows Data (In Millions) for Sun Trust