Suppose that a bank's actual reserves are $5 million, its checkable deposits are $5 million, and its excess reserves are $3 million. The reserve requirement must be
A) 40 percent.
B) 20 percent.
C) 10 percent.
D) 5 percent.

Question

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The Answer of Suppose that a bank's actual reserves are $5 million, its checkable deposits are $5 million, and its excess reserves are $3 million. The reserve requirement must be
A) 40 percent.
B) 20 percent.
C) 10 percent.
D) 5 percent.

Suppose That a Bank's Actual Reserves Are $5 Million, Its