Multiple Choice
If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is
A) $100,000.
B) $80,000.
C) $300,000.
D) $20,000.
E) $200,000.
Correct Answer:
Verified
Correct Answer:
Verified
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