Multiple Choice
The desired reserve ratio is 3 percent.Robert deposits $3,000 in Bank America.Bank America keeps its minimum desired reserves and lends the excess to Fredrica.How much does Bank America lend to Fredrica?
A) $3,000
B) $2,910
C) $300
D) $2,700
E) $900
Correct Answer:
Verified
Correct Answer:
Verified
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