A bank has deposits of $100,000, reserves of $20,000, and loans of $80,000. If the desired reserve ratio is 10 percent, then its excess reserves are

A) 0.
B) $8,000.
C) $10,000.
D) $2,000.
E) $12,000.


C

Economics

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Indicate whether the statement is true or false

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Pretty Polly produces dresses for little girls. When Pretty Polly's manager sets the change in ________ profit equal to its marginal cost of advertising, Pretty Polly's ________ profit is maximized.

A) net; gross B) gross; net C) net; net D) gross; gross

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If the interest rate is 3 percent per year and you borrow $100 for one year, at the end of the year you must pay back

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