A bank has $770 million in checkable deposits. The bank has $85 million in reserves. If the reserve requirement is 10%, the bank's required reserves are _____________ and its excess reserves are _____________. A. $85 million; $0 B. $770 million; $85 million C. $89 million; $21 million D. $77 million; $8 million

A bank has $770 million in checkable deposits. The bank has $85 million in reserves. If the reserve requirement is 10%, the bank's required reserves are _ and its excess reserves are _. A. $85 million; $0 B. $770 million; $85 million C. $89 million; $21 million D. $77 million; $8 million

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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