Multiple Choice
The table given below shows the assets and liabilities of the National Bank. Assume that this is the only bank in the economy.
Table 13.2
-Refer to Table 13.2. Calculate the change in the bank's excess reserves if the reserve requirement is decreased from 10% to 5%.
A) +$272.5
B) +$236
C) -$2,360
D) -$1877.5
E) -$3,210
Correct Answer:
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