Suppose a Bank Has $100,000 in Deposits,a Required Reserve Ratio

question 91

Multiple Choice

Suppose a bank has $100,000 in deposits,a required reserve ratio of 20 percent,and total reserves of $20,000.Then this bank can make new loans in the amount of

• A)$100,000.
• B)$20,000.
• C)$40,000.
• D)$0.

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Definitions:

Business Ethics

Principles and standards that determine acceptable conduct in business.