If the reserve requirement is 20 percent, this bank
A.     has $10,000 of excess reserves
B.     needs $10,000 more of reserves to meet its reserve requirements.
C.     needs $5,000 more of reserves to meet its reserve requirements.
D.     just meets its reserve requirement.
Answer:C
If the reserve requirement is 20 percent, this bank
A.     has $10,000 of excess reserves
 B.     needs $10,000 more of reserves to meet its reserve requirements.
 C.     needs $5,000 more of reserves to meet its reserve requirements.
 D.     just meets its reserve requirement.
