TBK Bank Balance Sheet
Assets Liabilities
$$\begin{array} { |l | l |}
\hline \text { Reserves } & \text { Deposits } \
\$120& \$ 600 \
\hline \text { Loans } & \text { Net worth } \
580 & 100 \
\hline \text { Total assets } & \text { Total liabilities } \
\$ 700 & \$ 700 \
\hline
\end{array}$$
-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?

Question

TBK Bank Balance Sheet
Assets Liabilities
 $$\begin{array} { |l | l |} 
\hline  \text { Reserves } & \text { Deposits } \
\$120& \$ 600 \
\hline \text { Loans } & \text { Net worth } \
580 & 100 \
\hline \text { Total assets } & \text { Total liabilities } \
\$ 700 & \$ 700 \
\hline
\end{array}$$
-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?

Quizplus · Accepted Answer

The desired reserve ratio is given as 25%, which means the bank should hold reserves equal to 25% of its deposits. The deposits are given as $600, therefore the desired reserves would be:

Desired reserves = 0.25 x Deposits
Desired reserves = 0.25 x $600
Desired reserves = $150

Hence, the correct answer is (B) $150.

TBK Bank Balance Sheet Assets Liabilities -The Above Table Presents the Balance Sheet of the TBK

TBK Bank Balance Sheet
Assets Liabilities -The Above Table Presents the Balance Sheet of the TBK