Required reserve ratio. Can someone please help me calculate it?

Question

geneticrockhopper247 · Answer

Assets Column:
Required Reserves: $40,000
Excess Reserves: $25,000
Government Bonds: $100,000
Loans: $30,000
Building and Fixtures: $15,000

Liabilities Column:
Checkable Deposits:$200,000
Owner's Equity: $10,000

All I want to know how to do is calculate the required reserve ratio. Can someone please help me?

geneticrockhopper247 · Answer

@ganeshie8 @iambatman @SolomonZelman @bibby @Nnesha @inkyvoyd 

Can any of you help?

anonymous · Answer

$$\Large \text{Required Reserve Ratio}= \frac{ Required~reserves }{ Checkable~deposits}$$

anonymous · Answer

Basically the required reserve ratio is a percentage that shows how much money you must keep in the bank (it's also related to the money multiplier which tells you how much money a bank can create, etc). The formula for required reserve ratio is

geneticrockhopper247 · Answer

Thank you @doulikepiecauseidont I've been trying to figure that out for days and my textbook is rather vague on the subject.

anonymous · Answer

Yes, mine was too almost and I remember not getting much help in the economics section on here