Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required and excess reserves are equal, then its actual reserves Multiple Choice are $1,500,000. cannot be determined from the given information. are $30,000. are $15,000.
Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required and excess reserves are equal, then its actual reserves Multiple Choice are $1,500,000. cannot be determined from the given information. are $30,000. are $15,000.
Chapter19: Money Creation
Section: Chapter Questions
Problem 19SQ
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Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required and
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