Question 47 1 point Assume that all banks face a reserve rat

Question 47 (1 point) Assume that all banks face a reserve ratio of.30. How would Indiana Bank enter Ralphies $325 deposit into its t-account? T-accounts 1) t-account a 2) t-account b 3) t-account c 4) t-account d Save

Solution

Answer is b.

Assets Liabilities

$227.50 Excess reserves $325 Liabilities

$97.50 Required reserves

Explanation: Deposits accepted is regarded as liabilities. And the 30% of it is kept as required reserves in assets and balance is also an assets to be used for granting loans.