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Suppose a Chartered Bank's Reserves Increase by $3,000 and the Bank

Question 5

Multiple Choice

Suppose a chartered bank's reserves increase by $3,000 and the bank, which holds no excess reserves, makes a loan of $2,400.What is the desired reserve ratio?  


A)  0.10 
B)  0.20 
C)  0.25 
D)  0.75

Correct Answer:

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