Suppose That the Bank of Bananas Has Excess Reserves of $10,000,000

Multiple Choice

Suppose that the Bank of Bananas has excess reserves of $10,000,000 and checkable deposits of $200,000,000.If the bank has a reserve requirement of 25 percent,what is its total amount of required reserves?

A) $10,000,000
B) $40,000,000
C) $50,000,000
D) $60,000,000
E) $202,500,000