A Single Bank with $20,000 of Reserves and a Reserve

question 105

Multiple Choice

A single bank with $20,000 of reserves and a reserve ratio of 5 percent could support total transactions account balances of at most

• A)$400,000.
• B)$1,000.
• C)$100,000.
• D)$20,000.

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Definitions:

Ureters

Tubes that carry urine from the kidneys to the urinary bladder.

Pressure Gradient

A pressure gradient is the physical quantity representing the difference in pressure between two points, causing fluid flow from the region of higher to lower pressure.

Plasma Clearance

A measure of the rate at which a substance is removed from the blood by the kidneys or other organs.

Plasma Osmolarity

The concentration of solutes in the blood plasma, important for the regulation of water balance and blood pressure.