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Exeter Bank Has $100 Million in Chequable Deposits and $10

Question 117

Multiple Choice

Exeter Bank has $100 million in chequable deposits and $10 million in net worth.With a 10 percent reserve requirement, what must Exeter Bank maintain in reserves?  


A)  $1 million 
B)  $2 million 
C)  $5 million 
D)  $10 million

Correct Answer:

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