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Answer the Question on the Basis of the Following Balance

Question 44

Multiple Choice

Answer the question on the basis of the following balance sheet for the First National Bank of Bunco.All figures are in millions.  Assets Reserves Securities Loans Property$20251590 Liabilities & Net Worth  Checkable Deposits Stock Shares$10050\begin{array}{c}\begin{array}{lll}\quad\quad\quad\underline{\text { Assets}}\\\text { Reserves}\\\text { Securities}\\\text { Loans}\\\text { Property} \end{array}\begin{array}{l}\\\$ 20 \\25 \\15 \\90\end{array}\begin{array}{lll}\quad\quad \underline{\text { Liabilities \& Net Worth }}\\\text { Checkable Deposits}\\\text { Stock Shares}\\\\\\\end{array}\begin{array}{lll}\\\$100\\50\\\\\\\end{array}\end{array}





Refer to the data.Suppose that this bank currently has $6 million in excess reserves and that customers of this bank collectively write checks for cash at the bank in the amount of $6 million.As a result,the bank's excess reserves diminish to:


A) $0.
B) $6 million.
C) $0.72 million.
D) $0.84 million.

Correct Answer:

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