Answer:
Reserves = $105,000
Required reserve = $30,000
Excess reserve = $75,000
Explanation:
Given:
Required reserve ratio = 0.20
Check able deposit = $150,000
Outstanding loans = $45,000
Computation:
Reserves = Check able deposit - Outstanding loan
Reserves = $150,000 - $45,000
Reserves = $105,000
Required reserve = Check able deposit[Required reserve ratio]
Required reserve = $150,000[0.20]
Required reserve = $30,000
Excess reserve = Reserves - Required reserve
Excess reserve = $105,000 - $30,000
Excess reserve = $75,000
