A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required
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A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the bank’s excess reserves?
a. $100 million
b. $88 million
c. $12 million
d. $2 million
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ANSWER Excess reserves refer to reserves held by a bank in ...View the full answer
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Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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