A bank has $113 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities are $113 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total legal reserves equal $6 million. Calculate the required reserve ratio. %. (Enter your response rounded to the nearest integer.)

A bank has $113 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities are $113 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total legal reserves equal $6 million. Calculate the required reserve ratio. %. (Enter your response rounded to the nearest integer.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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