If a bank has deposits of $100000,loans of $7000,cash on hand of $10000,and $15000 on deposit at the Bank of Canada,then its reserve ratio is:

Question

Quizplus · Accepted Answer

The reserve ratio is calculated as the total reserves (cash on hand + deposits at the Bank of Canada) divided by total deposits. Here, reserves are $10,000 + $15,000 = $25,000, and deposits are $100,000. So, the reserve ratio is $25,000 / $100,000 = 25%.

If a Bank Has Deposits of $100000,loans of $7000,cash on Hand