If a Bank Has Excess Reserves of $5,000 and Demand

question 33

Multiple Choice

If a bank has excess reserves of $5,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has actual reserves of

• A)$11,000.
• B)$20,000.
• C)$21,000.
• D)$26,000.

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