Final answer:
The correct answer cannot be determined due to a lack of context surrounding the B/D and bank pledging percentages. Information on reserve requirements and bank balance sheets is provided, but it does not give enough information to answer the question without further clarification on the specific scenario or regulatory requirements.
Step-by-step explanation:
The question seems to refer to the percentage a Broker/Dealer (B/D) can pledge of debit and the percentage a bank can pledge of a pledged security. However, the question lacks context and appears to be part of a specific set of rules or a scenario that is not provided. Therefore, it is not possible to determine the correct answer as it would depend on the specific regulatory requirements or the context of the scenario. Typically, regulatory requirements for pledging securities can vary by jurisdiction, and banks must adhere to specific leverage ratios as well.
For example, the fraction of money a bank is required to put aside, often known as the reserve requirement, relates to banking regulations and is a percentage of deposits. In the provided T-account balance sheet example, if a bank has deposits of $400 with reserves of $50, bonds worth $70, and loans of $500, its assets would total $620 ($50 in reserves, $70 in bonds, $500 in loans), and its liabilities would be $400 in deposits. The net worth, or equity, would be total assets minus total liabilities, which would be $220 ($620 - $400). However, this does not directly relate to the question asked about pledging percentages.