A small commercial bank has $10,000 in actual reserves, $60,000 in deposits, and has a 10 percent desired reserve ratio. Its excess reserves are
A) $4,000.
B) $10,000.
C) $50,000.
D) $6,000.
A
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If saving equals $200 when real disposable income equals $10,000, the break-even income is
A. greater than $10,000. B. less than $10,000. C. equal to $10,000. D. cannot be determined using the above information.