The central bank sets a reserve requirement of 67%. A commercial bank receives a deposit of R20641. Calculate the required reserves.

Answer 1

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.