Multiple Choice
If the desired reserve ratio is 15 percent,then for every dollar that is deposited in the bank,the bank will
A) keep 15 cents as reserves.
B) keep 85 cents as reserves.
C) keep 85 cents as reserves and loan 85 cents.
D) loan 15 cents.
E) keep 15 cents as reserves and loan 15 cents.
Correct Answer:
Verified
Correct Answer:
Verified
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