Bank of Mt. Etna has $500 million in deposits. Bank of Mt. Etna is meeting its reserve requirement and has no excess reserves. It has $75 million in reserves. Bank of Mt. Etna faces a required reserve ratio of
A. 15%.
B. 25.5%.
C. 45%.
D. 47.2%.
Answer: A
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Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
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