Suppose Bank a Holds $200 of Reserves, Has Deposits of $1000

question 256

Multiple Choice

Suppose Bank A holds $200 of reserves, has deposits of $1000, and the desired reserve ratio is 15 percent. How many loans can Bank A create at Bank A?

• A) $50
• B) $850
• C) $200
• D) zero, because Bank A has no excess reserves

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Definitions:

Work Attire

Work attire is the clothing and accessories deemed appropriate for the workplace, which can vary greatly depending on the organization's culture and industry.

Approach-avoidance Conflict

A psychological struggle experienced when an individual is attracted to and repelled by the same goal or option.

Negative Alternatives

Options in decision-making that are less desirable or have potential negative outcomes.

Intergroup Conflict

Intergroup conflict occurs among groups in an organization.