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Suppose the ABC bank has excess reserves of $1,000 and checkable deposits of $30,000. If the reserve requirement is 10 percent, what is the size

Suppose the ABC bank has excess reserves of $1,000 and checkable deposits of $30,000. If the reserve requirement is 10 percent, what is the size of the bank's actual reserves?

Multiple Choice

  • $4,000
  • $2,000
  • $31,000
  • $3,000

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