Suppose a Bank Has $2,000,000 in Deposits,a Minimum Reserve Requirement

question 135

Multiple Choice

Suppose a bank has $2,000,000 in deposits,a minimum reserve requirement of 10 percent,and bank reserves of $250,000.Then the bank has excess reserves of:

• A) $50,000
• B) $250,000
• C) $450,000
• D) $1,550,000

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