Assume That Bank ABC Has a Target Reserve Ratio of 10%.If

question 45

Multiple Choice

Assume that Bank ABC has a target reserve ratio of 10%.If Bank ABC receives a new deposit of $100 000,the largest new loan this bank could initially make,and maintain its target reserve ratio,is

• A)$1000.
• B)$10 000.
• C)$90 000.
• D)$100 000.
• E)$900 000.

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Definitions:

Inducing

The act of persuading or leading someone to undertake a certain action, often with implications in legal contexts like contracts or torts.

Fraud in the Execution

A situation where a person is deceived into signing a document without understanding its nature, existence, or contents.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, which induces another party to enter into a contract.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person.