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If Bulge Bank Has a Desired Reserve Ratio of 10

Question 96

Multiple Choice

If Bulge Bank has a desired reserve ratio of 10 percent,loans of $25,000,deposits of $100,000,vault cash of $10,000,and reserves at the Fed of $65,000,then the bank


A) has no remaining capacity to make loans.
B) does not have enough reserves to meet its requirement.
C) has excess reserves of $65,000.
D) has excess reserves of $55,000.
E) has excess reserves of $75,000.

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