TBK Bank Balance Sheet
Assets Liabilities

-The above table presents the balance sheet of the TBK commercial bank. What is this bank's actual reserve ratio?
A) 50 percent
B) 12 percent
C) 20 percent
D) 5 percent

Question

TBK Bank Balance Sheet
Assets Liabilities
 
-The above table presents the balance sheet of the TBK commercial bank. What is this bank's actual reserve ratio?
A) 50 percent 
B) 12 percent 
C) 20 percent 
D) 5 percent

Quizplus · Accepted Answer

The actual reserve ratio is calculated by dividing the bank's reserves by its total deposits. If the table shows reserves as 20% of total deposits, then the reserve ratio is 20 percent.