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Use the Balance Sheet for the Following Questions

Question 43

Multiple Choice

Use the balance sheet for the following questions.
Table 29-3
Use the balance sheet for the following questions. Table 29-3 -Refer to Table 29-3. If the reserve requirement is 10 percent, what is the state of this bank? A) It can make a new loan of $18 000. B) It has less reserves than required. C) It has excess reserves of less than $8000. D) It has excess reserves of more than $8000.
-Refer to Table 29-3. If the reserve requirement is 10 percent, what is the state of this bank?


A) It can make a new loan of $18 000.
B) It has less reserves than required.
C) It has excess reserves of less than $8000.
D) It has excess reserves of more than $8000.

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