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Assume that the Empathy State Bank begins with the balance sheet below and is fully loaned up. This bank's reserve ratio is: Group of answer choices 0.10 0.075 0.25 0.025

Sagot :

The reserve ratio of the Empathy State Bank given the information in its balance sheet is 0.075.

What is the Reserve Ratio?

Reserve ratio is the percentage of deposits of a bank that is kept with the Federal reserve (The central bank) as reserves. The lower the reserve ratio, the higher the increase in money supply.

Reserve ratio = deposits with the Fed / total amount of seposits

$7500 / 100,000 = 0.075

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