AnastaziaOpfer2176 AnastaziaOpfer2176
  • 14-01-2021
  • Business
contestada

The ABC Commercial Bank has $5,000 in excess reserves and the reserve ratio is 30 percent. This information is consistent with the bank having:

Respuesta :

andromache andromache
  • 15-01-2021

Answer:

$90,000 in checkable deposit liabilities and $32,000 in reserves

Explanation:

The computation is shown below;

As we know that

required reserve =deposit × required reserve ratio

= $90,000 × 0.3

= $27,000

Now

Actual reserves = required reserves + excess reserves

= $27,000 + $5,000

= $32,000

The actual reserve is $32,000 and the deposit is $90,000

So, the first option is correct

And, the remaining options are incorrect

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