A Small State Bank Currently Has Reserves Equal to $300,000

question 14

Multiple Choice

A small state bank currently has reserves equal to $300,000.If the state reserve requirement is 20%,but the bank currently maintains a 30% reserve,what amount of reserves would the bank need if it met the reserve requirements exactly?

• A) $200,000
• B) $100,000
• C) $300,000
• D) $1,000,000
• E) None of the above.

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