If All Banks Have Zero Excess Reserves,the Desired Reserve Ratio

question 65

Multiple Choice

If all banks have zero excess reserves,the desired reserve ratio is 10 percent,and a cheque for $1 million on Bank XYZ is deposited in Bank ABC,then excess reserves now equal

• A)$1 million.
• B)$900,000.
• C)$450,000.
• D)0)

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