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Suppose a Bank Has $6,000 in Chequable Deposits and the Desired

Question 12

Multiple Choice

Suppose a bank has $6,000 in chequable deposits and the desired reserve ratio is 0.2.And suppose the bank wishes to hold no excess reserves.What are the bank's actual reserves?  


A)  <$1,000 
B)  $1,200 
C)  $3,000 
D)  $4,000

Correct Answer:

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