If a Bank Has a Required Reserve Ratio of 25

question 84

Multiple Choice

If a bank has a required reserve ratio of 25 percent and there is $10,000 in deposits,what is the maximum amount of loans that can be made by this bank?

• A) $40,000
• B) $10,000
• C) $0
• D) $2,500
• E) $7,500

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Definitions:

Colonial Conflicts

Disputes and wars between colonial powers and indigenous peoples or among colonial powers themselves over land, resources, or political dominance.

Anglo-French Rivalry

A series of military, colonial, and economic conflicts between Britain and France that spanned several centuries, impacting global politics and territories.

Fashoda Affair

A diplomatic crisis between France and Britain in 1898 over control of Sudan, highlighting imperial rivalries and leading to the eventual Entente Cordiale.

Righteous and Harmonious Fists

A Chinese secret society known for the Boxer Rebellion (1899-1901), which aimed to rid China of foreign influence and missionaries.