A bank has a reserve requirement of 010 if it has demand


A bank has a reserve requirement of 0.10. If it has demand deposits of $100,000 and is holding $12,000 in reserves:

A. all the bank's reserves are excess reserves.

B. the bank is not meeting its reserve requirement.

C. the bank is holding $2,000 in excess reserves.

D. all reserves are required reserves.

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Managerial Economics: A bank has a reserve requirement of 010 if it has demand
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