$\begin{array}{l|l}\text { Assets }&\text { Liabilities }\
\hline
\text { Total reserves }\quad\$100,000&\text { Transactions accounts }\quad\$400,000\
\text { Loans }\quad300,000
\end{array}$

Table 13.1
XYZ Bank Balance Sheet Refer to Table 13.1.With a required reserve ratio of 20 percent,XYZ Bank could support maximum transactions account balances of

Question

$\begin{array}{l|l}\text { Assets }&\text { Liabilities }\
\hline 
\text { Total reserves }\quad\$100,000&\text { Transactions accounts }\quad\$400,000\
\text { Loans }\quad300,000
\end{array}$

Table 13.1
XYZ Bank Balance Sheet Refer to Table 13.1.With a required reserve ratio of 20 percent,XYZ Bank could support maximum transactions account balances of

Quizplus · Accepted Answer

The required reserve ratio of 20% means the bank must hold 20% of its transactions accounts as reserves. With $100,000 in reserves, the bank can support up to $500,000 in transactions accounts ($100,000 / 0.20 = $500,000).

Table 131 XYZ Bank Balance Sheet Refer to Table 13

Table 131
XYZ Bank Balance Sheet Refer to Table 13