In any case, I salute them both today. A commercial bank is facing the conditions given above. If the reserve requirement is 12 percent and the bank does not sell any of its securities, the maximum amount of additional lending this bank can undertake is:.

$3,000

Explanation:

The reserve requirement for a Bank is the amount of fund that a bank should have available in the hand everyday. It is usually expressed in a percentage of total deposits of the certain bank. The reserve requirements may be different for different countries banks. Usually the central bank determines the reserve requirements percentage for all the banks in a certain country. Here the reserve requirement is 12% which means a Bank can maximize amount of additional lending of $3,000.

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