Multiple Choice
Suppose the desired reserve ratio is 10 percent. If the Commerce Bank has total deposits of $20,000, total assets of $10,000, and actual reserves of $8000, the amount of excess reserves is
A) $2,000.
B) $6,000.
C) $0.
D) $100.
E) $800.
Correct Answer:
Verified
Correct Answer:
Verified
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