Use the following to answer questions:
-(Table: Balance Sheet) Refer to Table: Balance Sheet. If the reserve ratio is 25%, loans are:

Name: Use the following to answer questions: -(Table: Balance Sheet) Refer to Table: Balance Sheet. If the reserve ratio is 25%, loans are:
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Use the following to answer questions: 
-(Table: Balance Sheet) Refer to Table: Balance Sheet. If the reserve ratio is 25%, loans are:

Quizplus · Accepted Answer

If the reserve ratio is 25%, then 25% of deposits are held as reserves. Assuming total deposits are $80,000 (since $80,000 is the total of loans and reserves), reserves would be $20,000 (25% of $80,000), leaving $60,000 as loans.

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