Social Studies

Tyshawn

31 December, 15:26

A bank has $50,000 in checking account deposits and loans of $49,000. Of the $49,000 loaned out, $43,000 remains in the checking accounts of the loan recipients. The bank has $50,000 cash on hand, and the reserve requirement is 25%. The amount of its required reserves equals:

a)

$50,000.

b)

$23,250.

c)

$27,000.

d)

$26,750.