Bank a Has Checkable Deposits of $900,000 and Total Reserves

question 149

Multiple Choice

Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 8 percent,the bank has excess reserves of

• A) $40,000.
• B) $72,000.
• C) $13,440.
• D) $4,000.

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Definitions:

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