If Bank of Mateer Has a Required Reserve Ratio of 40

question 163

Multiple Choice

If Bank of Mateer has a required reserve ratio of 40 percent and there is $100,000 in deposits,what is the maximum amount of money it can loan?

• A) $100,000
• B) $15,000
• C) $40,000
• D) $60,000
• E) $0

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Definitions:

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground.

Biotic Factor

A living component of an ecosystem, such as plants, animals, and microorganisms, that affects and interacts with other organisms in their environment.

Bacteria

Microscopic single-celled organisms that inhabit virtually all environments on Earth, including soil, water, and living organisms, playing critical roles in various ecosystems.

Aquatic Life Zone

Areas in water bodies, such as lakes, rivers, and oceans, that support life, including various plants, animals, and microorganisms.