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A Small Commercial Bank Has $10,000 in Actual Reserves, $60,000

Question 131

Multiple Choice

A small commercial bank has $10,000 in actual reserves, $60,000 in deposits, and has a 10 percent desired reserve ratio. Its excess reserves are

A) $60,000.
B) $50,000.
C) $4,000.
D) $10,000.

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