Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves

Sagot :

Answer: $32000

Explanation:

The required reserves will be calculated as:

= Checkable deposit × Legal reserve ratio

= $80000 × 20%

= $16000

Excess reserves = $16000

Actual reserves will now be:

= Required reserves + Excess reserves

= $16,000 + $16,000

= $32,000

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.