Exhibit 13-1 -Refer to the Table in the Exhibit.Suppose the Interest Rate

Multiple Choice

Exhibit 13-1

-Refer to the table in the exhibit.Suppose the interest rate on loans is 10 percent.What is the annual cost to EuBank of holding excess reserves?  

A)  10 percent of $500,000 
B)  10 percent of net worth 
C)  10 percent of excess reserves 
D)  $10,000