Question

A comercial bank has checkable-deposit liabilities of $50,000 and a requird reserve ratio of 20 percent. what is the amount of requird reserves

Answer 1

$10,000.

Step-by-step explanation:

To find the amount of required reserves for a commercial bank, you need to multiply the checkable-deposit liabilities by the required reserve ratio.

In this case, the checkable-deposit liabilities are $50,000, and the required reserve ratio is 20 percent, which can be expressed as 0.20.

Required reserves = Checkable-deposit liabilities * Required reserve ratio

Required reserves = $50,000 * 0.20

Required reserves = $10,000

Therefore, the amount of required reserves for the commercial bank is $10,000.

Answer 2

$10 000 is the amount of required reserves