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Meramec Bank Has $40 Million in Deposits, a 25% Reserve

Question 217

Multiple Choice

Meramec Bank has $40 million in deposits, a 25% reserve requirement, and $15 million in actual reserves. How much does Meramec Bank have available for loans (excess reserves) ?


A) $40 million.
B) $25 million.
C) $15 million.
D) $ 5 million.

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