Econobank has the following required reserve requirements $$\begin{array} { | l | c | }
\hline \text { Trarnaction Accounts } & \text { Requirement } \
\hline \$ 0 \text { to } \$ 12.4 & 0 \% \
\hline \text { More than } \$ 12.4 \text { million to } \$ 79.5 \text { million } & 3 \% \
\hline \text { More than } \$ 79.5 \text { million } & 10 \% \
\hline
\end{array}$$ If Econobank has $68.5 million in checking deposits what is the amount of required reserves?

Question

Econobank has the following required reserve requirements $$\begin{array} { | l | c | } 
\hline \text { Trarnaction Accounts } & \text { Requirement } \
\hline \$ 0 \text { to } \$ 12.4 & 0 \% \
\hline \text { More than } \$ 12.4 \text { million to } \$ 79.5 \text { million } & 3 \% \
\hline \text { More than } \$ 79.5 \text { million } & 10 \% \
\hline
\end{array}$$ If Econobank has $68.5 million in checking deposits what is the amount of required reserves?

Quizplus · Accepted Answer

Econobank has $68.5 million in checking deposits, which falls into the "More than $12.4 million to $79.5 million" category with a 3% reserve requirement. Therefore, the required reserves are 3% of $68.5 million, which is $2.055 million.

Econobank Has the Following Required Reserve Requirements If Econobank Has $68