If a Bank Has Actual Reserves of $40,000 and a 20

question 85

Multiple Choice

If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:

• A) $200,000.
• B) $80,000.
• C) $300,000.
• D) $20,000.