Northern Bank: Balance Sheet
Assets Liabilities
Reserves $800 Deposits $10 000
Loans $11 200 Capital $2000
$12 000 $12 000
TABLE 26-6
-Refer to Table 26-6.Assume that Northern Bank's target reserve ratio is 10%.What is it's actual reserve ratio?
A) 6.67%
B) 7.1%
C) 8.0%
D) 9.1%
E) 10.0%
Correct Answer:
Verified
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