A bank with $100 million in deposits has $6 million in vault cash,$6 million on deposit with the Bank of Canada,and $6 million in government securities.The reserve requirement is 20 percent.A person deposits a check for $10 million drawn on another bank.The maximum loan this bank can now make is
A) 0)
B) $6 million.
C) $8 million.
D) $10 million.
Correct Answer:
Verified
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