If a Bank Has Excess Reserves of $20,000 and Demand

question 137

Multiple Choice

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

• A)$16,000.
• B)$20,000.
• C)$26,000.
• D)$36,000.