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A bank has 5127 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities ar
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Answer #1

A bank has $127 million in total assets, its liabilities are $127 million in transactions deposits. The bank's total legal reserves equal $7 million.

Required reserve ratio= Reserves/ transaction deposits *100

= 7/127 * 100 = 5.5

Hence, the required reserve ratio is 5.5%

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