Multiple Choice
Suppose Bank ABC has a target reserve ratio of 2%.If Bank ABC receives a new deposit of $50 million it will immediately find itself with
A) no excess cash reserves.
B) excess cash reserves of $1 million.
C) excess cash reserves of $10 million.
D) excess cash reserves of $49 million.
E) excess cash reserves of $49.5 million.
Correct Answer:
Verified
Correct Answer:
Verified
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