Assets Liabilities Reserves $30 Loans $970 Total $1,000 Deposits $1,000 Total $1,000 The above table gives the initial balance sheet for Mega Bank. Mega Bank's desired reserves equal its required reserves. Based on the initial balance sheet, what is the required reserve ratio for Mega Bank? 10 percent 1.4 percent O 30 percent O 3 percent

Assets Liabilities Reserves $30 Loans $970 Total $1,000 Deposits $1,000 Total $1,000 The above table gives the initial balance sheet for Mega Bank. Mega Bank's desired reserves equal its required reserves. Based on the initial balance sheet, what is the required reserve ratio for Mega Bank? 10 percent 1.4 percent O 30 percent O 3 percent

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assets
Liabilities
Reserves $30
Loans $970
Total $1,000
Deposits $1,000
Total $1,000
The above table gives the initial balance sheet for Mega Bank. Mega Bank's desired reserves equal
its required reserves. Based on the initial balance sheet, what is the required reserve ratio for
Mega Bank?
10 percent
1.4 percent
O 30 percent
O 3 percent

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