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Suppose a Bank Has $100 Million in Chequable Deposits, and the Desired

Question 45

Multiple Choice

Suppose a bank has $100 million in chequable deposits, and the desired reserve ratio is 0.1.The bank has $5 million in actual reserves.What are the excess reserves?  


A)  ?$10 million 
B)  ?$5 million 
C)  0 
D)  $5 million

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