Multiple Choice
A bank has a reserve requirement of 0.10. If it has demand deposits of $100,000 and is holding $12,000 in reserves:
A) all the bank's reserves are excess reserves.
B) the bank is not meeting its reserve requirement.
C) the bank is holding $2,000 in excess reserves.
D) all reserves are required reserves.
Correct Answer:
Verified
Correct Answer:
Verified
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