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The following balance sheet is an abridge version of Scotia Banks balance sheet. Liabilities Assets Cash (reserves) Loans 100 300 Deposits 400 1. [2
The following balance sheet is an abridge version of Scotia Banks balance sheet. Liabilities Assets Cash (reserves) Loans 100 300 Deposits 400 1. [2 points] What is the reserve ratio of Scotia Bank? (show work) 2. [2 points] Christmas is approaching fast and Scotia bank knows it is a period of high currency demand. If it anticipates that its depositors will increase their demand for money from 15 to 30%, given its current balance sheet, how much excess liquidity (reserves) do they have?
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