Initially a Bank Has a Required Reserve Ratio of 15

question 71

Multiple Choice

Initially a bank has a required reserve ratio of 15 percent and no excess reserves.If $10,000 is deposited in the bank,then,ceteris paribus,

• A)This bank can increase its loans by $1,500.
• B)Required reserves will increase by $10,000.
• C)Total reserves will increase by $8,500.
• D)This bank can increase its loans by $8,500.

---

Definitions:

Poor Countries

Nations with low levels of socioeconomic development, characterized by low incomes, high poverty rates, and limited access to basics.

Sociological Imagination

The ability to see the link between individual experiences and the larger society, as conceptualized by C. Wright Mills.

Global Impact

The effects or consequences of actions, events, or conditions that have a wide-reaching influence across the world.

Consumer Habits

Patterns or tendencies in purchasing behavior displayed by individuals or groups as they buy products or services.