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Suppose You Found $5000 Hidden in Your Closet and Deposited

Question 88

Multiple Choice

Suppose you found $5000 hidden in your closet and deposited it in a demand deposit account at your bank.If the desired reserve ratio was 10 percent,how much would the deposit directly create in excess reserves?


A) $500
B) $1500
C) $4500
D) $5500

Correct Answer:

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