-The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank's desired reserves?
A) 20 percent
B) $175
C) $120
D) $150

Question

-The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank's desired reserves?
A) 20 percent 
B) $175 
C) $120 
D) $150

Quizplus · Accepted Answer

The desired reserves are calculated by multiplying the total deposits by the reserve ratio. If the total deposits are $600 (as inferred from the context), then the desired reserves would be 25% of $600, which equals $150.

-The Above Table Presents the Balance Sheet of the TBK