Answer:
The size of the bank's actual reserves is $44000.
Step-by-step explanation:
The bank has checkable deposits of $150,000 and it has excess reserves of $14,000.
Therefore, the required reserves = 20% of the checkable deposit
= [tex]\frac{20}{100}\times 150000 = 30000[/tex] dollars. {As the reserve ratio is 20%}
Now, we know that the bank's actual reserves = The required reserves + The excess reserves
= $(30000 + 14000)
= $44000
Therefore, the size of the bank's actual reserves is $44000. (Answer)
