Ask Question
23 February, 13:12

A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the bank's excess reserves? LO33.2a.$100 million. b.$88 million. c.$12 million. d.$2 million.

+4
Answers (1)
  1. 23 February, 13:17
    0
    Given:

    Checkable deposit = $100 million

    actual reserves = $12 million

    required reserve ratio = 10%

    100 million * 10% = 10 million

    10 million - 12 million = 2 million excess reserves

    D.) $2 million is the bank's excess reserves
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers