Ask Question
10 October, 16:53

A commercial bank has checkable-deposit liabilities of $50,000 and a reserve ratio of 20 percent. what is the amount of required reserves?

+1
Answers (1)
  1. 10 October, 17:46
    0
    The amount of required reserves is $10,000. It is equivalent to 20% of the checkable-deposit liability of the commercial bank which is $50,000.

    Required reserved should be based on a percentage of the checkable-deposit liability of the commercial bank. Actual reserve amount should not fall below the required reserves.
Know the Answer?