A commercial bank has checkable-deposit liabilities of $50,000 and a required reserve ratio of 20 percent. What is the amount of required reserves?

Name: A commercial bank has checkable-deposit liabilities of $50,000 and a required reserve ratio of 20 percent. What is the amount of required reserves?
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The required reserve ratio is 20 percent, so the bank is required to hold 20 percent of its checkable-deposit liabilities in reserves. Thus, the amount of required reserves is $50,000 x 0.20 = $10,000.

A Commercial Bank Has Checkable-Deposit Liabilities of $50,000 and a Required