Multiple Choice
Suppose the desired reserve ratio is 0.1, and Linda deposits $4,000 in cash at the Dominion National Bank.And suppose the bank held no excess reserves before Linda's deposit, and the bank now increases its reserves by $500.How much excess reserve does this bank have?
A) $50
B) $100
C) $400
D) $500
Correct Answer:
Verified
Correct Answer:
Verified
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