The ABC Bank has $5,000 in excess reserves and the desired reserve ratio is 30.The bank must have:
A) $90,000 in outstanding loans and $35,000 in actual cash reserves.
B) $90,000 in demand deposit liabilities and $32,000 in actual cash reserves.
C) $20,000 in demand deposit liabilities and $10,000 in actual cash reserves.
D) $90,000 in demand deposit liabilities and $35,000 in actual cash reserves.
Correct Answer:
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