Use the balance sheet below for the following questions.
Table 29-2

-Refer to Table 29-2. What is the reserve ratio?
A)0 percent
B)20 percent
C)80 percent
D)100 percent

Name: Use the balance sheet below for the following questions. Table 29-2 -Refer to Table 29-2. What is the reserve ratio? A)0 percent B)20 percent C)80 percent D)100 percent
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Question

Use the balance sheet below for the following questions.
Table 29-2
 
-Refer to Table 29-2. What is the reserve ratio?
A)0 percent 
B)20 percent 
C)80 percent 
D)100 percent

Quizplus · Accepted Answer

The reserve ratio is calculated as Total Reserves/Total Deposits, which equals $250/$1,250 = 0.20 or 20%. Therefore, the best choice is B.

Use the Balance Sheet Below for the Following Questions