-Refer to Table 10-2

Multiple Choice

-Refer to Table 10-2. If the reserve requirement is 10 percent and then someone deposits $50,000 into the bank, what is the bank's reserve position?

A) It will have $75,000 in excess reserves.
B) It will have $52,500 in excess reserves.
C) It will need to raise reserves by $5000.
D) It will have excess reserves of $2500.