Multiple Choice
Suppose Bank X is holding total cash reserves of $32, 000 on deposits of $90, 000.If the reserve requirement is 15 percent, then the excess reserves held by this bank is:
A) $27, 200.
B) $58, 000.
C) $4, 800.
D) $13, 200.
E) $18, 500.
Correct Answer:
Verified
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