Answer to Question #5670 in Macroeconomics for Richard Enriquez
A bank has the following assets: 60,000 in reserves, 30,000 in loans and 90,000 in checkable deposits. The reserve requirement is 25%; whats the banks amount of actual reserves?
Actual reserves are reserves above reserve requirement. Bank has 30000 in loans and 90000 in deposits (total 120000). Reserve rate is equal to 25%, so reserve requirement for this bank is equal to 0.25*120000=30000. And bank has 60000 in reserves, so actual reserves are equal to 60000-30000=30000.