For a Small Bank in a Large Banking System,excess Reserves

question 56

Multiple Choice

For a small bank in a large banking system,excess reserves are equal to the

• A)Amount of money that the U.S.Treasury makes available for loans.
• B)The amount of reserves that a bank must hold equal to the loans that it makes.
• C)The amount of loans a bank can make after meeting the reserve requirement.
• D)The difference between transactions account balances and loans.

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