A bank reports reserves of $500,000,physical capital of $200,000,loans of $1,000,000,deposits of $1,000,000,and owners' equity of $500,000.If the desired reserve ratio is 5 percent,the bank's desired reserves are
A) $10,000.
B) $25,000.
C) $50,000.
D) $1,000,000.
E) $500,000.
Correct Answer:
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