ABC Bank has $210,000 of checkable deposits. If the Federal Reserve has a reserve requirement of 4 percent, what is the required reserves

Respuesta :

Answer:

the required reserve is $8,400

Explanation:

The computation of the required reserve is shown below;

Required reserves is

= reserve requirement × Checkable deposits

= 4% × $210,000

= $8,400

By mutiplying the reserve requirement with the checkable deposit we can determine the required reserve

hence, the required reserve is $8,400

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