If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of: a. $16,000.
b. $20,000.
c. $26,000.
d. $36,000.

c. $26,000.

Explanation:

The computation of the actual reserve is as follows:

Actual reserve is

= Reserve requirement + excess reserve

= $80,000 × 20% + $10,000

= $16,000 + $10,000

= $26,000

hence, the actual reserve is $26,000

Therefore the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

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