If the Desired Reserve Ratio Is 3 Per Cent and Deposits

question 41

Multiple Choice

If the desired reserve ratio is 3 per cent and deposits totalled $575 billion, banks would hold

• A)$17.25 billion in reserves.
• B)$17.25 billion in excess reserves.
• C)$557.75 billion in reserves.
• D)$1,725 billion in currency.

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