Northern Bank: Balance Sheet Assets Liabilities
Reserves $800 Deposits $10 000
Loans $11 200 Capital $2000
$12 000 $12 000
TABLE 26-6
Refer to Table 26-6.Assume that Northern Bank's target reserve ratio is 10%.What is its current level of excess reserves?
A) -$320
B) -$200
C) $0
D) $320
E) $200
Correct Answer:
Verified
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