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    Macroeconomics Study Set 68
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    Exam 15: Money Creation
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    Assume That a Bank Initially Has No Excess Reserves
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Assume That a Bank Initially Has No Excess Reserves

Question 146

Question 146

Multiple Choice

Assume that a bank initially has no excess reserves. If it receives $5,000 in cash from a depositor and the bank finds that it can safely lend out $4,500, the reserve requirement must be


A) zero.
B) 10 percent.
C) 20 percent.
D) 25 percent.

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