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Which One of the Following Equations Is Correct

Question 61

Multiple Choice

Which one of the following equations is correct?


A) Total reserves minus excess reserves equals required reserves.
B) Excess reserves minus required reserves equals total reserves.
C) Required reserves equals excess reserves divided by total reserves.
D) Total reserves equals excess reserves divided by required reserves.
E) Excess reserves plus outstanding loans equals total reserves.

Correct Answer:

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