$$\begin{array} { | c | c | c | c | c | }
\hline & \text { Reserve Requirement (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } & \text { Excess Reserves } \
\hline ( 1 ) & \underline { W } & \$ 100,000 & \$ 10,000 & \$ 0 \
\hline ( 2 ) & 8 & \underline { X } & 20,000 & 12,000 \
\hline ( 3 ) & 12 & 200,000 & \underline { Y } & 8,000 \
\hline ( 4 ) & 20 & 300,000 & 70,000 & \underline { Z } \
\hline
\end{array}$$ The accompanying table gives data for a commercial bank or thrift. In row 1, the number appropriate for space W is
A) 4.
B) 6.
C) 10.
D) 12.

Question

$$\begin{array} { | c | c | c | c | c | } 
\hline & \text { Reserve Requirement (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } & \text { Excess Reserves } \
\hline ( 1 ) & \underline { W } & \$ 100,000 & \$ 10,000 & \$ 0 \
\hline ( 2 ) & 8 & \underline { X } & 20,000 & 12,000 \
\hline ( 3 ) & 12 & 200,000 & \underline { Y } & 8,000 \
\hline ( 4 ) & 20 & 300,000 & 70,000 & \underline { Z } \
\hline
\end{array}$$ The accompanying table gives data for a commercial bank or thrift. In row 1, the number appropriate for space W is
A) 4.
B) 6.
C) 10.
D) 12.

Quizplus · Accepted Answer

For row 1, the reserve requirement can be calculated using the formula: $$ \text{Reserve Requirement (\%)} = \frac{\text{Actual Reserves}}{\text{Checkable Deposits}} \times 100\% $$ Substituting the given values: $$ \text{Reserve Requirement (\%)} = \frac{\$10,000}{\$100,000} \times 100\% = 10\% $$

The Accompanying Table Gives Data for a Commercial Bank or |