A Bank Has $100,000 in Checkable Deposits and $30,000 in Reserves

question 100

Multiple Choice

A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 20%, what is the maximum amount of loans this bank can create?

• A) $0
• B) $10,000
• C) $20,000
• D) $30,000

---

Definitions:

Event A

A specific outcome or type of outcome from a random process or experiment.

Reading Vision

The ability to see and interpret text, often measured to assess visual acuity and prescribe corrective measures.

Qualified Professional

An individual who has met the educational, training, or certification requirements necessary for a specific job or profession.

Selected Adults

A specific group of adult individuals chosen based on certain criteria for the purpose of a study or survey.