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Question
A bank has $770 million in checkable deposits. The bank has $85 million in reserves. The bank's required reserves are _____________ and its excess reserves are _____________.
A. $85 million; $0
B. $770 million; $85 million
C. $89 million; $21 million
D. $685 million; $8.5 million
E. $77 million; $8 million
Answer
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