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20 August, 07:02

A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the bank's excess reserves? LO33.2a.$100 million. b.$88 million. c.$12 million. d.$2 million.

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  1. 20 August, 10:36
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    Given:

    Checkable deposit = $100 million

    actual reserves = $12 million

    required reserve ratio = 10%

    100 million * 10% = 10 million

    10 million - 12 million = 2 million excess reserves

    D.) $2 million is the bank's excess reserves
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