The following table lists some statistics on Boring Bank.

-Refer to the table above.If Boring Bank faces a required reserve ratio of 10 percent and has twice as many excess reserves as required reserves,how many total assets does Boring Bank have?

Question

The following table lists some statistics on Boring Bank.
 
-Refer to the table above.If Boring Bank faces a required reserve ratio of 10 percent and has twice as many excess reserves as required reserves,how many total assets does Boring Bank have?

Quizplus · Accepted Answer

Boring Bank has $40 in required reserves and $80 in excess reserves. Total reserves are $120. If reserves are 10% of total assets, then total assets are $1200.

The Following Table Lists Some Statistics on Boring Bank