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A New Bank Has Reserves of $600,000,checkable Deposits of $500,000,and

Question 91

Multiple Choice

A new bank has reserves of $600,000,checkable deposits of $500,000,and government securities of $100,000.If the desired reserve ratio is 10 percent,the amount of loans this bank can make is


A) $50,000.
B) $60,000.
C) $540,000.
D) $550,000.
E) $600,000.

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