Given the balance sheet below and assuming a required reserve ratio of 20 percent,how much (in dollar terms) must the bank hold in required reserves?
A) It is failing to meet its reserve requirement.
B) It is just meeting its reserve requirement,but has no excess reserves.
C) It is meeting its reserve requirement,and has $5 million in excess reserves.
D) It is meeting its reserve requirement,and has $10 million in excess reserves.
E) It is meeting its reserve requirement,and has $15 million in excess reserves.
Correct Answer:
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