Reserves $1,000Loans 7,0001) 12.5%The First Bank of OhioO2) 14.3%Assets3) 87.5%Refer to the above T-account, what is the reserve ratio?Liabilities4) Cannot determineDeposits $8,000

Reserve ratio represents the percentage of its total deposits which a bank have to keep as reserves…

Answered: The First Bank of Ohio Assets Reserves…

The First Bank of Ohio Assets Reserves $1,000 Loans 7,000 1) 12.5% Liabilities Deposits $8,000 Refer to the above T-account, what is the reserve ratio?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 39P: How much money do you have to put into a bank account that pays 10% interest compounded annually to...

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Question

Reserves $1,000
Loans 7,000
1) 12.5%
The First Bank of Ohio
O2) 14.3%
Assets
3) 87.5%
Refer to the above T-account, what is the reserve ratio?
Liabilities
4) Cannot determine
Deposits $8,000

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