Suppose the Desired Reserve Ratio Is 10 Percent

question 369

Multiple Choice

Suppose the desired reserve ratio is 10 percent.If the Commerce Bank has total deposits of $20,000,total assets of $10,000,and actual reserves of $8000,the amount of excess reserves is

• A)$2,000.
• B)$6,000.
• C)$800.
• D)$100.
• E)$0.

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