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If Loans Are $300,000, Checkable Deposits Are $600,000, and the Required

Question 199

Multiple Choice

If loans are $300,000, checkable deposits are $600,000, and the required reserve ratio is 40 percent, then excess reserves are:

A) $360,000.
B) $240,000.
C) $120,000.
D) $60,000.
E) $30,000.

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