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Ainat [17]
3 years ago
12

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15%, then

the bank has actual reserves of______________.
Business
1 answer:
vlabodo [156]3 years ago
3 0

Answer:

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15%, then the bank has actual reserves of $22,000.

Explanation:

Total deposit = $100,000

Reserve requirement = 15% of the total deposit

Therefore, required reserves = 15% of $100,000

=15/100 * $15,000

= 0.15*$100,000

required reserves = $15,000

The excess  reserves given in the question = $7,000

Total reserves = Required reserves + Excess reserves = $15,000 + $7,000 = $22,000

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Answer:

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eimsori [14]

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valkas [14]

Answer:

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