A bank receives a demand deposit of $3,200. The bank loans out $2,456 of this deposit and increases its excess reserves by $200. What is the reserve requirement? A. 6.25 percent B. 15 percent C. 20 percent D. 17 percent E. 23. 25 percent
A bank receives a demand deposit of $3,200. The bank loans out $2,456 of this deposit and increases its excess reserves by $200. What is the reserve requirement? A. 6.25 percent B. 15 percent C. 20 percent D. 17 percent E. 23. 25 percent
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 17CQ
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Question
A bank receives a demand deposit of $3,200. The bank loans out $2,456 of this deposit and increases its excess
reserves by $200. What is the reserve requirement?
A. 6.25 percent
B. 15 percent
C. 20 percent
D. 17 percent
E. 23. 25 percent
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