If a Bank Has Excess Reserves of $4,000 and Demand

question 198

Multiple Choice

If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 15 percent,then the bank has actual reserves of

• A)$17,000.
• B)$19,000.
• C)$24,000.
• D)$29,000.

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