Answer:
If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15%, then the bank has actual reserves of $22,000.
Explanation:
Total deposit = $100,000
Reserve requirement = 15% of the total deposit
Therefore, required reserves = 15% of $100,000
=15/100 * $15,000
= 0.15*$100,000
required reserves = $15,000
The excess reserves given in the question = $7,000
Total reserves = Required reserves + Excess reserves = $15,000 + $7,000 = $22,000
