Table 29-5. -Refer to Table 29-5. If the Bank Faces a Reserve

question 381

Multiple Choice

Table 29-5.
-Refer to Table 29-5. If the bank faces a reserve requirement of 6 percent, then the bank

• A)is in a position to make a new loan of $12,000.
• B)is in a position to make a new loan of $18,000.
• C)has excess reserves of $12,000.
• D)None of the above is correct.

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