Table 29-5.
-Refer to Table 29-5. If the bank faces a reserve requirement of 8 percent, then the bank
A)is in a position to make a new loan of $14,000.
B)has fewer reserves than are required.
C)has excess reserves of $16,400.
D)None of the above is correct.

Question

Table 29-5. 
-Refer to Table 29-5. If the bank faces a reserve requirement of 8 percent, then the bank
A)is in a position to make a new loan of $14,000. 
B)has fewer reserves than are required. 
C)has excess reserves of $16,400. 
D)None of the above is correct.

Quizplus · Accepted Answer

The Answer of Table 29-5. 
-Refer to Table 29-5. If the bank faces a reserve requirement of 8 percent, then the bank
A)is in a position to make a new loan of $14,000. 
B)has fewer reserves than are required. 
C)has excess reserves of $16,400. 
D)None of the above is correct.

Table 29-5. -Refer to Table 29-5. If the Bank Faces a Reserve