If a Single Bank Has $25,000 in Excess Reserves and the Desired

question 108

Multiple Choice

If a single bank has $25,000 in excess reserves and the desired reserve ratio is 20 percent, what is the maximum this bank can loan?

• A)$20,000
• B)$25,000
• C)$125,000
• D)$30,000
• E)$5,000

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