Multiple Choice
A bank has $50,000 in checking account deposits and loans of $49,000. Of the $49,000 loaned out, $43,000 remains in the checking accounts of the loan recipients. The bank has $50,000 cash on hand, and the reserve requirement is 25%. The amount of its excess reserves equals
A) $23,250.
B) $26,750.
C) $27,000.
D) $50,000.
Correct Answer:
Verified
Correct Answer:
Verified
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