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A Bank Has $10,000 in Deposits and $8,000 in Loans

Question 73

Multiple Choice

A bank has $10,000 in deposits and $8,000 in loans. It has loaned out all it can given the reserve requirement. It follows that the reserve requirement is


A) 2 percent.
B) 12.5 percent.
C) 20 percent.
D) 80 percent.

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