Multiple Choice
Assume that the required reserve ratio is 5 percent.If a commercial bank has $2 million cash in its vault, $1 million in government securities, $3 million on deposit at the Fed, and $60 million in checkable deposits, then its excess reserves equal
A) $0 million.
B) $2 million.
C) $5 million.
D) $6 million.
Correct Answer:
Verified
Correct Answer:
Verified
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