If a commercial bank has checkable deposit liabilities of $50,000 and the required reserve ratio is set at 12%, the commercial bank must hold how much in reserves assets?

Question

Quizplus · Accepted Answer

The required reserve ratio is 12%, which means the commercial bank must hold 12% of its checkable deposit liabilities in reserve assets. Therefore, the bank must hold $6,000 in reserves assets (12% of $50,000).

If a Commercial Bank Has Checkable Deposit Liabilities of $50,000