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Refer to the Information Provided in Scenario 25

question 286

Multiple Choice

Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.
SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. Refer to the information provided in Scenario 25.2 below to answer the question(s)  that follow. SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.   -Refer to Scenario 25.2. If the required reserve ratio were changed to 20%, total loans of Bank No. 2 will change to A)  $64,000. B)  $72,000. C)  $74,250. D)  $80,000.
-Refer to Scenario 25.2. If the required reserve ratio were changed to 20%, total loans of Bank No. 2 will change to


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