Refer to Table 10.1. The required reserve ratio First Commercial BankAssetsLiabilities + Net WorthReserves$200,000$1 millionDeposits Required--$200,000Net Worth Excess$50,000 Loans-- Total$1.2 million$1.2 millionTotal is 15%.is 10%.is 12.5%.cannot be determined from the given information.

Given information: Actual reserves = $200,000 Excess reserves = $50,000 Deposit = $1 million = $1,000,000 Actual reserve = Required reserve + Excess reserve => $200,000 = Required reserve + $50,000 => Required reserve = $200,000 - $50,000 => Required reserve = $150,000 ------------------- The required reserve ratio is required reserve as a percentage of the deposit Required reserve ratio = (Required reserve / Deposit)*100 => Required reserve ratio = ($150,000 / $1,000,000)*100 => Required reserve ratio = 15% Hence, the required reserve ratio is 15% ----------------------- Answer: Option (A), i.e., 15% ------------------------

Answered: Refer to Table 10.1. The required…

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Refer to Table 10.1. The required reserve ratio

First Commercial Bank
Assets	Liabilities + Net Worth
Reserves	$200,000	$1 million	Deposits
Required	--	$200,000	Net Worth
Excess	$50,000
Loans	--
Total	$1.2 million	$1.2 million	Total

is 15%.

is 10%.

is 12.5%.

cannot be determined from the given information.

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