The ABC Commercial Bank has $5,000 in excess reserves, and the reserve ratio is 30 percent. This information is consistent with the bank having
A) $90,000 in outstanding loans and $35,000 in reserves.
B) $90,000 in checkable deposit liabilities and $32,000 in reserves.
C) $20,000 in checkable deposit liabilities and $10,000 in reserves.
D) $90,000 in checkable deposit liabilities and $35,000 in reserves.
Correct Answer:
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