If a Bank Has Deposits of $800,000, Total Reserves Equal

question 90

Multiple Choice

If a bank has deposits of $800,000, total reserves equal $600,000, and the reserve ratio is equal to .25, what is the value of excess reserves?

• A) $600,000
• B) $100,000
• C) $400,000
• D) $150,000
• E) $500,000

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