If a bank has total deposits of $7,000 and reserves of $1,400. (a) What is its current

Question:

If a bank has total deposits of $7,000 and reserves of $1,400.

(a) What is its current reserve ratio?

(b) How large is its loan portfolio (outstanding loans)?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...