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

Quizplus · Accepted Answer

After a new deposit of $400, total reserves become $700 ($300 + $400), and total deposits become $2400 ($2000 + $400). The reserve ratio is $700/$2400 = 29.17%, approximately 29%.