The Desired Reserve Ratio Is 3 Percent

question 318

Multiple Choice

The desired reserve ratio is 3 percent.Robert deposits $3,000 in Bank America.Bank America keeps its minimum desired reserves and lends the excess to Fredrica.How much does Bank America lend to Fredrica?

• A)$3,000
• B)$2,910
• C)$300
• D)$2,700
• E)$900

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