Multiple Choice
Suppose that the reserve ratio is 6%, and applies only to checkable deposits. A bank has non-checkable time deposits of $300 million, checkable deposits of $100 million, and reserves of $8 million. What are the excess reserves of this bank?
A) $5.6 million
B) $6 million
C) $2 million
D) $2.4 million
Correct Answer:
Verified
Correct Answer:
Verified
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