If a bank had $200 million in demand deposits and faced a 40 percent reserve requirement, it would be required to hold ____ as reserves and could have a total amount of loans issued up to ____.
A) $120 million; $80 million
B) $80 million; $120 million
C) $200 million; $500 million
D) $500 million; $200 million
Correct Answer:
Verified
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