If the Banking System Has Demand Deposits of $200,000,total Reserves

question 108

Multiple Choice

If the banking system has demand deposits of $200,000,total reserves equal to $60,000,and a required reserve ratio of 25 percent,the banking system can increase the volume of loans by a maximum of

• A)$40,000.
• B)$60,000.
• C)$10,000.
• D)$200,000.

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Definitions:

Injunctions

are judicial orders that restrain a person from beginning or continuing an action threatening or invading the legal right of another, or that compel a person to carry out a certain act, like repairing a nuisance.

Remedies

Legal means for enforcing rights or compensating harm due to the breach of a legal duty.

Tying Arrangements

Business practices where the sale of one product or service is conditioned on the purchase of another, often scrutinized under antitrust laws for potentially restricting competition.

Exclusive Dealing Arrangements

A contractual agreement where one party agrees to buy goods exclusively from another party, limiting their ability to purchase from others.