$$\begin{array} { | l | l | }
\hline { \text { Assets } } &{ \text { Liabilities } } \
\hline \text { Reserves } & \text { Deposits } \
\$100& \$ 400 \
\text { Loans } & \text { Net Worth } \
\$ 600 & \$ 300 \
\text { Total } & \text { Total } \
\$ 700 & \$ 700 \
\hline
\end{array}$$
-The above table gives the initial balance sheet for Mini Bank.Mini Bank's actual reserve ratio equals ________.

Question

$$\begin{array} { | l | l | } 
\hline { \text { Assets } } &{ \text { Liabilities } } \
\hline \text { Reserves } & \text { Deposits } \
\$100& \$ 400 \
\text { Loans } & \text { Net Worth } \
\$ 600 & \$ 300 \
\text { Total } & \text { Total } \
\$ 700 & \$ 700 \
\hline
\end{array}$$
-The above table gives the initial balance sheet for Mini Bank.Mini Bank's actual reserve ratio equals ________.

Quizplus · Accepted Answer

The actual reserve ratio is calculated by dividing reserves by deposits. In this case, reserves are $100 and deposits are $400, so the actual reserve ratio is $100/$400 = 0.25, or 25%.

-The Above Table Gives the Initial Balance Sheet for Mini