To calculate the excess reserves for the commercial bank after it receives a deposit of R29,433 with a reserve requirement of 65%, we can follow these steps:
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Calculate Required Reserves: This is the portion of the deposit that the bank must hold as reserves, which is determined by the reserve requirement.
\[ \text{Required Reserves} = \text{Deposit} \times \text{Reserve Requirement} \]
Plugging in the numbers:
\[ \text{Required Reserves} = 29,433 \times 0.65 = 19,144.45 \]
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Calculate Total Reserves: The total reserves of the bank after the deposit is the full amount of the deposit since it has to keep part of it as required reserves.
\[ \text{Total Reserves} = \text{Deposit} = R29,433 \]
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Calculate Excess Reserves: The excess reserves are the total reserves minus the required reserves.
\[ \text{Excess Reserves} = \text{Total Reserves} - \text{Required Reserves} \]
Plugging in the numbers we calculated:
\[ \text{Excess Reserves} = 29,433 - 19,144.45 = 10,288.55 \]
Thus, the excess reserves resulting from the deposit of R29,433 at the commercial bank is R10,288.55.
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