Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All ﬁgures are in billions of dollars. The claims of owners in the commercial banking
System are equal to
A) $60 billion.
B) $100 billion.
C) $135 billion.
D) $150 billion.

Question

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All ﬁgures are in billions of dollars. The claims of owners in the commercial banking
System are equal to
A) $60 billion. 
B) $100 billion. 
C) $135 billion. 
D) $150 billion.

Quizplus · Accepted Answer

The claims of owners in the commercial banking system are equal to total equity, which is calculated as total assets minus total liabilities. Using the information provided in the accompanying consolidated balance sheet, we can calculate total assets as $1125 + $125 + $150 = $1400 billion and total liabilities as $1000 + $215 = $1215 billion. Therefore, total equity (the claims of owners) is $1400 billion - $1215 billion = $185 billion.

Refer to the Accompanying Consolidated Balance Sheet for the Commercial