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County Bank Has Deposits of $200 Million, a Reserve Requirement

Question 47

Multiple Choice

County Bank has deposits of $200 million, a reserve requirement of 20%, and $36 million in actual reserves. Currently, the bank:


A) is not meeting its reserve requirement.
B) is just meeting its reserve requirement.
C) is meeting its reserve requirement and can make new loans.
D) does not have enough information to determine its reserve and loan-making position.

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