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Need it ASAP!!!!!! When you open a checking account at Bank of​ America, Bank of America...

Need it ASAP!!!!!!

When you open a checking account at Bank of​ America, Bank of America A. has more reserves and more excess reserves. B. has more​ reserves, but excess reserves remain unchanged. C. has more deposits and less in excess reserves. D. has more​ deposits, but excess reserves remain unchanged.

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Answer #1

The correct option is A) has more reserves and more excess reserves.

Excess reserves are bank-held funds that exceed the Federal Reserve's minimum reserve requirement. You can determine excess reserves by subtracting required reserves from legal reserves. Keep in mind, the United States uses a fractional-reserve system. A fractional-reserve banking system is a banking system where banks only hold in reserves a fraction of the money that is deposited with them. The deposits not held in reserves are used to make loans or are invested.

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