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A Bank Has $7 Million in Checkable Deposits and $1

Question 133

Multiple Choice

A bank has $7 million in checkable deposits and $1.2 million in total reserves.If the required reserve ratio is 10 percent,then the bank has

A) required reserves of $700,000.
B) excess reserves of $500,000.
C) excess reserves of $1,080,000.
D) required reserves of $120,000.
E) a and b

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