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If you deposit $100 into the bank and there is a 20% reserve requirement, what does that mean?

A) the bank needs to hold 20% and can loan out the rest

B) the bank charges you 20% interest

C) you can always take back 20% of your money

D) the fed keeps 80% of the money and loans out 20%

1 Answer

2 votes

Answer:

I would guess A

Step-by-step explanation:

User Yanike
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