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.
Correct Answer:

Verified
Correct Answer:
Verified
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