What is CCIM Bank's reserve requirement if it has actual reserves of $72 million, excess reserves of $24 million, and deposits of $240 million?
A) 10 percent.
B) 15 percent.
C) 20 percent.
D) 30 percent.

Question

Quizplus · Accepted Answer

The reserve requirement is calculated as (Actual Reserves - Excess Reserves) / Deposits. Here, it is ($72 million - $24 million) / $240 million = $48 million / $240 million = 0.20 or 20 percent.

What Is CCIM Bank's Reserve Requirement If It Has Actual