If the required reserve ratio is .10, demand deposits are $200 million, and total reserves are $40 million, then excess reserves are
A) $20 million.
B) $40 million.
C) $400 million.
D) $2,000 million.
Correct Answer:
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Q1: A bank can safely lend an amount
Q3: Assume that excess reserves are $35 million,
Q4: Deposits with the Federal Reserve Bank are
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Q10: If the required reserve ratio is .25,
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A) never since it
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