Suppose a Bank Has $200,000 in Deposits,a Required Reserve Ratio

question 17

Multiple Choice

Suppose a bank has $200,000 in deposits,a required reserve ratio of 25 percent,and bank reserves of $100,000.Then this bank can make new loans in the amount of

• A)$100,000.
• B)$50,000.
• C)$25,000.
• D)$20,000.

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Definitions:

Trade Union

An organization formed by workers to protect their rights and interests through collective bargaining.

Bargaining Unit

A group of employees with a common interest, often related to job function or workforce sector, represented collectively in negotiations with employers.

Workers' Compensation Act

Legislation that provides financial benefits to workers who suffer injuries or illnesses as a result of their job duties.

Compulsory Arbitration

A mandatory process where disputing parties are required to resolve their differences through an arbitrator's decision, rather than through a court trial.