The table shows a bank's balance sheet. The bank has no excess reserves and there is no currency drain. Calculate the bank's desired reserve ratio. >>> Answer to 1 decimal place. The bank's desired reserve ratio is percent of deposits.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The table shows a bank's balance sheet. The bank has no excess reserves and there is no
currency drain.
Calculate the bank's desired reserve ratio.
>>> Answer to 1 decimal place.
The bank's desired reserve ratio is
percent of deposits.
Transcribed Image Text:The table shows a bank's balance sheet. The bank has no excess reserves and there is no currency drain. Calculate the bank's desired reserve ratio. >>> Answer to 1 decimal place. The bank's desired reserve ratio is percent of deposits.
Assets
Reserves at the
Fed
Cash in vault
Securities
Loans
Liabilities
(millions of dollars)
20
15
60
115
Checkable deposits
Savings deposits
115
95
Transcribed Image Text:Assets Reserves at the Fed Cash in vault Securities Loans Liabilities (millions of dollars) 20 15 60 115 Checkable deposits Savings deposits 115 95
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