Use the information in this T-account to calculate this bank's reserve ratio.Assume that the reserve requirement is 25%.Is this bank meeting this reserve requirement? Calculate the new reserve ratio if the loan recipients convert their checking account balances to cash and take the cash out of this bank.Is the bank still meeting its reserve requirement?
Assets
Liabilities
$50,000 (cash)
$50,000 (checking account balances)
$49,000 (loans)
$43,000 (loan recipients' checking account balances)
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