If a Bank Has a Required Reserve Ratio of 10

question 28

Multiple Choice

If a bank has a required reserve ratio of 10 percent,excess reserves of $10,000,000,and deposits of $500,000,000,how much can the bank lend out?

• A) $10,000,000
• B) $40,000,000
• C) $50,000,000
• D) $100,000,000
• E) $510,000,000

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Definitions:

James-Lange Theory

A theory of emotion stating that physiological responses precede emotional experiences, suggesting that emotions result from the interpretation of bodily reactions.

Emotional Reactions

Responses that involve feelings and are typically prompted by environmental stimuli or internal thoughts.

Cortex

The outer layer of the brain involved in various high-level brain functions, including sensation, perception, memory, association, thought, and voluntary physical action.

Spinal Cord Injuries

Damage to the spinal cord that results in a loss of function, such as mobility or sensation.