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    Macroeconomics Principles Applications
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    Exam 13: Money and the Banking System
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    Suppose a Bank Has $1 Million in Deposits, a Reserve
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Suppose a Bank Has $1 Million in Deposits, a Reserve

Question 55

Question 55

Multiple Choice

Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of


A) $250,000.
B) $125,000.
C) $62,500.
D) $0.

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