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Suppose That the Canucks Bank Has Excess Reserves of $6,000

Question 89

Multiple Choice

Suppose that the Canucks Bank has excess reserves of $6,000 and demand deposits of $100,000.If its targeted reserve ratio is 10 percent,what is the size of the bank's actual reserves?


A) $4,000.
B) $16,000.
C) $10,000.
D) $14,000.

Correct Answer:

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