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

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

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