Answer:
Option (c) is correct.
Explanation:
Given that,
Total deposits = $150,000
Loans = $125,000
Reserves = $25,000
Reserve requirement = 20 percent
Required reserves = 20% of Total deposits
= 0.2 × $150,000
= $30,000
Reserves needed = Required reserves - Reserves(Given)
= $30,000 - $25,000
= $5,000
Therefore, this bank needs $5,000 more reserves to meet its reserve requirements.
Note: Table is missing from the question. So, I have attached with the answer.
