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Use the Balance Sheet for the Following Questions

Question 93

Multiple Choice

Use the balance sheet for the following questions.
Table 29-3
Use the balance sheet for the following questions. Table 29-3 -Refer to Table 29-3.The reserve requirement is 10 percent and then someone deposits an additional $50,000 into the bank,then if the bank takes no other action it will A) have $65,000 in excess reserves. B) have $55,000 in excess reserves. C) need to raise an additional $5,000 of reserves to meet the reserve requirement D) None of the above is correct.
-Refer to Table 29-3.The reserve requirement is 10 percent and then someone deposits an additional $50,000 into the bank,then if the bank takes no other action it will


A) have $65,000 in excess reserves.
B) have $55,000 in excess reserves.
C) need to raise an additional $5,000 of reserves to meet the reserve requirement
D) None of the above is correct.

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