Assume That Bank ABC Has a Target Reserve Ratio of 10

question 10

Multiple Choice

Assume that Bank ABC has a target reserve ratio of 10 percent. 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)$900 000.
• B)$100 000.
• C)$ 90 000.
• D)$ 1000.
• E)$ 10 000.

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Definitions:

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group, including language, religion, cuisine, social habits, music, and arts.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period, often leading to intoxication.

Increased Power

The amplification or growth in strength, influence, or authority of an individual, group, or entity, often within social, political, or organizational contexts.

Higher Socioeconomic

Relating to individuals or groups characterized by a higher level of income, education, and occupational status within society.