What dollar amount of deposits can the bank hold

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Question - Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds no excess reserves, and the required reserves ratio is 8 percent, approximately what dollar amount of deposits can the bank hold?

a. $75.0 million

b. $64.5 million

c. $76.0 million

d. $63.5 million

Reference no: EM133048180

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