$$\begin{array} { | l | l }
\hline { \text { Assets } } & { \text { Liabilities } } \
\hline \text { Reserves } & \
\$ 500 & \text { Deposits } \
\text { Loans } & \$ 3,000 \
\underline{\$ 2,500} & \
\text { Total assets } & \text { Total } \
\$ 1,000 & \$ 3,000 \
\hline
\end{array}$$
-The table shows the balance sheet for Ralph's Bank.If the desired reserve ratio is 15 percent,the maximum additional amount that Ralph's Bank can loan is equal to ________.

Question

$$\begin{array} { | l | l } 
\hline  { \text { Assets } } &  { \text { Liabilities } } \
\hline \text { Reserves } & \
\$ 500 & \text { Deposits } \
\text { Loans } & \$ 3,000 \
\underline{\$ 2,500} & \
\text { Total assets } & \text { Total } \
\$ 1,000 & \$ 3,000 \
\hline
\end{array}$$
-The table shows the balance sheet for Ralph's Bank.If the desired reserve ratio is 15 percent,the maximum additional amount that Ralph's Bank can loan is equal to ________.

Quizplus · Accepted Answer

The desired reserve ratio is 15 percent, so the bank must hold 15 percent of its deposits in reserves. The bank currently has $3,000 in deposits, so it must hold $450 in reserves. The bank currently has $500 in reserves, so it can loan out an additional $50.

-The Table Shows the Balance Sheet for Ralph's Bank