Suppose That a Bank Has $100 Million in Checkable Deposits

question 160

Multiple Choice

Suppose that a bank has $100 million in checkable deposits and the required reserve ratio is 0.1.The bank has $5 million in actual reserves,so excess reserves are

• A)$-10 million
• B)$-5 million
• C)0
• D)$5 million
• E)$10 million

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