The table below shows the balance sheet of Eubank.If Eubank is holding no excess reserves,its required reserve must be:
Table 14.1

EUBANK

Question

The table below shows the balance sheet of Eubank.If Eubank is holding no excess reserves,its required reserve must be:​ ​
Table 14.1
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EUBANK

Quizplus · Accepted Answer

The required reserve ratio is the percentage of deposits that banks are required to keep in reserve. To find the required reserve, we need to calculate 10 percent of Eubank's total deposits:

Required reserve = 10% of $900 million
Required reserve = $90 million

If Eubank is holding no excess reserves, they must hold $90 million in reserves to meet their required reserve ratio of 10 percent.

The Table Below Shows the Balance Sheet of Eubank