Suppose that a bank has checkable deposits of $500, loans of $400 and reserves of $100. If
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Suppose that a bank has checkable deposits of $500, loans of $400 and reserves of $100.
If the required reserve ratio is 6%, what are this bank's excess reserves?
(a) $70
(b) $60
(c) $90
(d) $30
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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