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    Economics Study Set 2
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    Exam 14: The Federal Reserve and Monetary Policy
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    If a Bank Has Reserves of $100 Million and Demand
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If a Bank Has Reserves of $100 Million and Demand

Question 28

Question 28

Essay

If a bank has reserves of $100 million and demand deposits of $700 million,how much are the bank's (a)required reserves and (b)excess reserves?

Correct Answer:

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(a)
$10.7 x 0.0 = $00
$44.5 x ...

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