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The following information pertains to the Bank of Moncton. Assets: Liabilities: Reserves $7000
Deposits $140,000 Loans $133,000 Refer to the Table 10-4. If the Bank of Canada requires a
reserve ratio of 4 percent, how much in excess reserves does the Bank of Moncton now hold? a.
$1200 b. $1400 c. $2880 d. $3000

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