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If Mellon Bank Has Demand Deposits of $6 Billion and Excess

Question 69

Multiple Choice

If Mellon Bank has demand deposits of $6 billion and excess reserves of $50 million,and the reserve requirement is 10%,the bank's actual reserves are


A) $550 million.
B) $600 million.
C) $650 million.
D) $1 billion.
E) $1.05 billion.

Correct Answer:

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