If someone deposits a $100 bill in a commercial bank which has a 5 percent target reserve ratio,which of the following is true?
A) The bank will have $95 of additional excess reserves.
B) The bank will have $100 of required reserves.
C) The bank will have $100 of additional excess reserves.
D) The bank will be capable of lending an additional $2,000.
E) The bank will be capable of lending an additional $100.
Correct Answer:
Verified
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