If a Bank Has $200,000 of Checkable Deposits,a Required Reserve

question 73

Multiple Choice

If a bank has $200,000 of checkable deposits,a required reserve ratio of 20 percent,and it holds $80,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A)$50,000.
• B)$40,000.
• C)$30,000.
• D)$25,000.

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Definitions:

Velocity

The rate of change of an object's position with respect to a frame of reference, showing both speed and direction of the object.

Segment

A part or section of something that is separated or distinct from the whole.

Decreases

The process or instance of becoming smaller or fewer in size, amount, intensity, or degree.

Velocity

The speed of an object in a specific direction, quantified as the distance covered per unit of time.