If a Bank Has $100,000 of Checkable Deposits,a Required Reserve

question 96

Multiple Choice

If a bank has $100,000 of checkable deposits,a required reserve ratio of 20 percent,and it holds $40,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A)$30,000.
• B)$25,000.
• C)$20,000.
• D)$10,000.

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Planning Phase

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