$\begin{array}{l|l}\text { Assets }&\text { Liabilities }\
\hline
\text { Total reserves }\quad\$80,000&\text { Transactions accounts }\quad\$200,000\
\text { Loans }\quad120,000
\end{array}$

Table 13.2
ABC Bank Balance Sheet Refer to Table 13.2.With total reserves of $80,000 and a required reserve ratio of 25 percent,ABC Bank could support maximum transactions account balances of

Question

$\begin{array}{l|l}\text { Assets }&\text { Liabilities }\
\hline 
\text { Total reserves }\quad\$80,000&\text { Transactions accounts }\quad\$200,000\
\text { Loans }\quad120,000
\end{array}$

Table 13.2
ABC Bank Balance Sheet Refer to Table 13.2.With total reserves of $80,000 and a required reserve ratio of 25 percent,ABC Bank could support maximum transactions account balances of

Quizplus · Accepted Answer

The required reserve ratio of 25% means the bank must hold $1 in reserves for every $4 in transactions accounts. With $80,000 in reserves, the bank can support $80,000 / 0.25 = $320,000 in transactions account balances.

Table 132 ABC Bank Balance Sheet Refer to Table 13

Table 132
ABC Bank Balance Sheet Refer to Table 13