Answer:
$200,000
Explanation:
Reserve requirement of a bank is the ratio of the bank's deposits that must be reserved with the closest Federal reserve bank. This is a regulatory requirement that is aimed at preventing failure of financial institutions.
The reserve kept by banks will be a final source of funds to settle it's liabilities to customers incase of failure.
In this instance the required reserve is 20% of customer deposit and this is equivalent of $40,000.
To get the customer deposit that will give this reserve.
20%= $40,000
100%= Customer deposit
Cross-multiply
Customer deposit= (100* 40,000)/20= $200,000
