If the Desired Reserve Ratio Is 3 Percent and Deposits

question 482

Multiple Choice

If the desired reserve ratio is 3 percent and deposits totaled $575 billion, banks would hold

• A) $17.25 billion in reserves.
• B) $17.25 billion in excess reserves.
• C) $1,725 billion in currency.
• D) $534.75 in reserves.

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