Multiple Choice
The FUN Bank has no excess reserves when a new deposit of $20,000 is made.The desired reserve ratio is 5 percent.After the deposit,but before making any loans,how much does The FUN Bank have in excess reserves?
A) $1,000
B) $20,000
C) $9,000
D) $19,000
E) $21,000
Correct Answer:
Verified
Correct Answer:
Verified
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