Table 11-4. -Refer to Table 11-4. If the Bank Faces a Reserve

Multiple Choice

Table 11-4.

-Refer to Table 11-4. If the bank faces a reserve requirement of 10 percent, then the bank

A) is in a position to make a new loan of $10,000.
B) has fewer reserves than are required.
C) has excess reserves of $12,500.
D) None of the above is correct.