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deposits as reserves

If the Federal Reserve requires that banks retain 15% of all deposits as reserves, a bank that receives $100,000 in deposits can loan up to:

A) $30,000.
B) $85,000.
C) $115,000.
D) $185,000.
E) none of the above

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If the Federal Reserve requires that banks retain 15% of all deposits ...

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A problem with deposits as reserves is solved.

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