$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -The Above Table Gives the Initial Balance Sheet for Mega

question 413

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 30 &\text { Deposits }&\$1,000\\\text { Loans }&\$970\\\text { Total } & \$ 1,000&\text { Total }&\$1,000 \\\hline\end{array}$
-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?

• A) 30 percent
• B) 1.4 percent
• C) 3 percent
• D) 10 percent

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