The commercial banks on Sunny Island have checking deposits of $4 million, reserves of $600,000, and loans of $2.4 million. The desired reserve ratio is 10 percent. The banks have ________ of desired reserves and ________ of excess reserves
A) $600,000; $0
B) $400,000; $200,000
C) $400,000; $600,000
D) $600,000; $200,000
B
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How can one "beat the market"?
What will be an ideal response?
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