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:

Food Requirements

the essential nutrients needed by the body to maintain health and properly function, which vary by age, sex, and physical activity levels.

Emotional Abuse

A form of abuse characterized by non-physical behaviors such as threats, insults, or isolation, affecting the victim's psychological well-being.

Criticizes

To express disapproval of someone or something based on perceived faults or mistakes.

Good-For-Nothing

A derogatory term used to describe someone or something that is of no use or value.