Respuesta :
The total reserves that the bank has is $36,000.
What is the total reserves?
Total reserves is the sum of required reserves and excess reserves. Required reserves is the compulsory reserves that must be kept in the vaults of the Central Bank of the country. The required reserve is a function of the reserve requirement, and the deposits customers make in a bank.
The reserve requirement is the percentage of deposits that the Central bank of a country expects banks to keep as deposits. The required reserve is a monetary policy tool that is used to control the money supply in the economy.
Excess reserves is the reserves that a bank has in addition to the required reserves. Excess reserves represent money that can be lent out and used to increase the money supply in the economy.
Total reserves =required reserves + excess reserves
Required reserves = reserve requirement x demand deposit liabilities
0.2 x 80,000 = 16,000
Total reserves = 16,000 + 20,000 = 36,000
To learn more about required reserves, please check: https://brainly.com/question/26960248
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