Question
The central bank sets a reserve requirement of 67%. A commercial bank receives a deposit of R20641. Calculate the required reserves.
Answers
GPT-4o mini
To calculate the required reserves based on the reserve requirement set by the central bank, you can use the formula:
\[
\text{Required Reserves} = \text{Deposit} \times \text{Reserve Requirement}
\]
In this case, the deposit is R20641 and the reserve requirement is 67% (or 0.67 in decimal form).
Now we can perform the calculation:
\[
\text{Required Reserves} = R20641 \times 0.67
\]
\[
\text{Required Reserves} = R13829.47
\]
Therefore, the required reserves are R13829.47.
\[
\text{Required Reserves} = \text{Deposit} \times \text{Reserve Requirement}
\]
In this case, the deposit is R20641 and the reserve requirement is 67% (or 0.67 in decimal form).
Now we can perform the calculation:
\[
\text{Required Reserves} = R20641 \times 0.67
\]
\[
\text{Required Reserves} = R13829.47
\]
Therefore, the required reserves are R13829.47.