Multiple Choice
A bank has $770 million in checkable deposits. The bank has $85 million in reserves. The bank's required reserves are _____________ and its excess reserves are _____________.
A) $85 million; $0
B) $770 million; $85 million
C) $89 million; $21 million
D) $685 million; $8.5 million
E) $77 million; $8 million Required = 10% (770) ; Excess = 85 - 10% (770)
Correct Answer:
Verified
Correct Answer:
Verified
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