If Bulge Bank has a desired reserve ratio of 10 percent, loans of $25,000, deposits of $100,000, vault cash of $10,000, and reserves at the Fed of $65,000, then the bank
A) has excess reserves of $55,000.
B) has no remaining capacity to make loans.
C) does not have enough reserves to meet its requirement.
D) has excess reserves of $75,000.
E) has excess reserves of $65,000.
Correct Answer:
Verified
Q102: When we use money to purchase goods
Q103: Physical currency is--------------------popular than e-cash,--------------------
A)more; and both
Q104: Fiat money means
A)the money can be converted
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents