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

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JamieJamieJamie

The amount of required reserves is $10,000. It is equivalent to 20% of the checkable-deposit liability of the commercial bank which is $50,000. Required reserved should be based on a percentage of the checkable-deposit liability of the commercial bank. Actual reserve amount should not fall below the required reserves.

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