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

question 110

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.

Understand the legal distinctions and implications of contracts with incompetent persons.

Distinguish between necessary and non-necessary goods and services in contracts with minors.

Comprehend the legal outcomes of misrepresentation of age in contract formation and disaffirmance.

Recognize the legal consequences of intoxication on contractual capacity and the voidability of contracts.

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Definitions:

Ordinary General Annuity

A series of equal payment or receipt amounts that occur at evenly spaced intervals over a fixed period, with payments made at the end of each period.

Present Value

The present value of a sum of money or series of cash inflows expected in the future, calculated using a particular rate of return.

Ordinary General Annuity

An annuity where payments are made at the end of each period, such as monthly or annually, over a specified length of time.

Present Value

The contemporary worth of an expected future sum of money or flow of cash payments, accounting for a specific rate of return.