A. abc bank has $300,000 of checkable deposits. if the federal reserve has a reserve requirement of 12 percent, what is the required reserves? $ b. xyz bank has required reserves of $26,050 and excess reserves of $494,950, what is the amount of actual reserves? $

Required reserves = $36000

Actual reserves = $521000

Explanation:

given data

check able deposits = $300,000

reserve requirement = 12 percent

required reserves = $26,050

excess reserves = $494,950

to find out

what is the required reserves and amount of actual reserves

solution

we get here Required reserves that is express as

Required reserves = reserve ratio  × check able deposits     1

put here value we get

Required reserves = 12%  × $300,000

Required reserves = $36000

and

Actual reserves will be

Actual reserves = required reserves + excess reserves      2

Actual reserves = $26,050 + $494,950

Actual reserves = $521000

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

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