Final answer:
The commercial bank's checkable-deposit liabilities are $300 million when it has required reserves of $60 million at a 20% reserve ratio.
Step-by-step explanation:
If a commercial bank has required reserves of $60 million and the reserve ratio is 20%, we can calculate the bank's checkable-deposit liabilities by dividing the required reserves by the reserve ratio. To find the checkable-deposit liabilities we use the formula: checkable-deposit liabilities = required reserves / reserve ratio. Therefore, checkable-deposit liabilities = $60 million / 0.20 = $300 million.
The correct answer is C. $300 million. This represents the total amount of checkable deposits that the bank holds which corresponds to the required reserves at a 20% reserve ratio.