The following represents the consolidated balance sheet for a hypothetical banking system.The target reserve ratio is 8 percent.
-Refer to the information above to answer this question.Which of the following is true of this banking system?
A) It is under-reserved by $4,000.
B) It is under-reserved by $50,000.
C) It is over-reserved by $4,000.
D) It is over-reserved by $50,000.
E) It is under-reserved by $9,333.
Correct Answer:
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