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Ronch [10]
2 years ago
14

ABC Bank has $210,000 of checkable deposits. If the Federal Reserve has a reserve requirement of 4 percent, what is the required

reserves
Business
1 answer:
Andru [333]2 years ago
5 0

Answer:

the required reserve is $8,400

Explanation:

The computation of the required reserve is shown below;

Required reserves is

= reserve requirement × Checkable deposits

= 4% × $210,000

= $8,400

By mutiplying the reserve requirement with the checkable deposit we can determine the required reserve

hence, the required reserve is $8,400

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Explanation:

<u>Note</u>: A similar complete question is as follow as the question provided is incomplete <em>"A company has $11,970 available per month for advertising. Newspaper ads cost $110 each and can't run more than 25 times per month. Radio ads cost $410 each and can't run more than 32 times per month at this price. Each newspaper ad reaches 5950 potential customers, and each radio ad reaches 7100 potential customers. The company wants to maximize the number of ad exposures to potential customers. Use n n for number of Newspaper advertisements and r r for number of Radio advertisements . Maximize P"</em>

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