If Mellon Bank Has Demand Deposits of $6 Billion and Excess

question 185

Multiple Choice

If Mellon Bank has demand deposits of $6 billion and excess reserves of $50 million,and the reserve requirement is 10%,the bank's actual reserves are

• A)$550 million.
• B)$600 million.
• C)$650 million.
• D)$1 billion.
• E)$1.05 billion.

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