A Single Chartered Bank Has a Desired Reserve Ratio of 25

question 80

Multiple Choice

A single chartered bank has a desired reserve ratio of 25 percent.If the bank has no excess reserves initially and $5,000 cash is deposited in the bank, it can increase its loans by a maximum of:

• A)$1,250
• B)$120,000
• C)$5,000
• D)$3,750

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Definitions:

Self-Sabotage

Behaviors or thought patterns that hinder a person's success or well-being, often done unconsciously.

Procrastination

The action of delaying or postponing tasks despite knowing there will be negative consequences.

Steps

Sequential actions or procedures followed to achieve a particular end.

Organizational Strategies

Plans or methodologies applied by businesses or institutions to reach goals, optimize performance, and manage resources efficiently.