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WITCHER [35]
3 years ago
15

suppose the national bank of commerce has excess reserves of 8000 and outstanding checkable deposits and 150000 if the reserve r

atio is 20 percent, what is the size of the banks actual reserves
Business
1 answer:
sasho [114]3 years ago
5 0

Answer:

the size of the banks actual reserves is $38,000

Explanation:

The computation the size of the bank actual reserve is shown below:

But before that the required reserve is

= Reserve ratio × checkable deposit

= 20% × 150,000

= $30,000

Now the actual reserve is

= Required reserve + excess reserve

= $30,000 + $8,000

= $38,000

Hence, the size of the banks actual reserves is $38,000

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