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Suppose a Bank Has $1,500,000 in Deposits and the Desired

Question 161

Multiple Choice

Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the bank's unplanned reserves are equal to


A) zero.
B) $180,000.
C) $120,000.
D) $20,000.

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