TBK Bank Balance Sheet
Assets Liabilities

-The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank's desired reserves?
A) $120
B) $150
C) $175
D) $30

Question

TBK Bank Balance Sheet
Assets Liabilities
 
-The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank's desired reserves?
A) $120 
B) $150 
C) $175 
D) $30

Quizplus · Accepted Answer

Desired reserves are calculated based on the desired reserve ratio and the total deposits. With a 25% reserve ratio, the bank would want to hold 25% of its deposits as reserves. If the bank's deposits are $600 (assuming from the context, as the table is not provided), 25% of $600 is $150.