Solved

The ABC Bank Has $5,000 in Excess Reserves and the Desired

Question 140

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents