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Suppose that Serendipity Bank has excess reserves of $8,000 and checkable deposits of $150,000.Instructions: Enter your answer as a whole number.If the reserve ratio is 20 percent, what is the size of the bank's actual reserves?

Respuesta :

Answer: $38,000

Explanation:

Required reserves = 20% of checkable deposits

                               = 20% × 150,000

                               = $30,000

Actual reserves = Required reserves + Excess reserves

                          = $30,000 + $8,000

                          = $38,000

Excess reserves = Actual reserves - Required reserves

                           = $38,000 - $30,000

                           = $8,000

Therefore, bank's actual reserves is $38,000

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