Bank deposits at the Federal Reserve = $40 billion, vault cash = $2 billion, the required reserve ratio = 0.10, and total checkable deposits = $400 billion. It follows that required reserves equal __________ billion, (total) reserves equal __________ billion and excess reserves equal __________ billion
A) $42; $42; $2
B) $42; $40; $2
C) $2; $40; $38
D) $38; $40; $2
E) $40; $42; $2
E
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