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CIBC borrows $500,000 from the Bank of Canada, leaving a $500,000 of securities on deposit with the Bank of Canada to serve as collateral for

CIBC borrows $500,000 from the Bank of Canada, leaving a $500,000 of securities on deposit with the Bank of Canada to serve as collateral for the loan. The bank rate that applies to the loan is 2.5% and the desired reserve ratio of 8% percent. How much of the $500,000 borrowed by CIBC will be kept asdesired reserves?

A.$40000

B.$460000

C.$0

D.$100000

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