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If a Bank Gets a $100 000 New Deposit,chooses to Lend

Question 128

Multiple Choice

If a bank gets a $100 000 new deposit,chooses to lend out $75 000,and increases its excess reserves by $5000 at the same time,what is the desired reserve ratio?


A) 5 percent
B) 20 percent
C) 25 percent
D) 30 percent

Correct Answer:

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