Bank will have $6000 excess reserves after a check for $10,000 was drawn and cleared against it.
The Reserve Bank of IndiaThe Reserve Bank of India (RBI) is India's central bank and regulatory body in charge of overseeing the Indian banking system. The Ministry of Finance of the Government of India owns it. It is in charge of the Indian rupee's control, issuance, and supply.
When the deposit fall by $10,000, then the total checkable deposit become $1,20,000.
As the legal reserve ratio is 20%.
The reserve before check was drawn is cleared is $40,000.
The reserve after check was drawn is $40,000-$10,000=$30,000
The reserve that bank must keep is =120000*20%=$24,000
The excess reserve with bank is =$30000-$24000=$6000
Therefore, the correct answer is required reserves = $6000.
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