How do I compute on the actual reserve when and If a bank holds an access reserves of 8000 dollars and a checkable deposits of 150000 dollars with a reserve ratio of 20%?
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- the actual reserves should be 38,000 not 30,000.Required reserve=reserve ratio*outstanding checkable deposits Required reserve=20%*150,000 =30,000 Actual reserve=required reserves+excess reserves =30,000+8,000 =$38,000
- Aug 05, 2018 at 4:12am