If a Bank Has a Required Reserve Ratio of 10

question 28

Multiple Choice

If a bank has a required reserve ratio of 10 percent,excess reserves of $10,000,000,and deposits of $500,000,000,how much can the bank lend out?

• A) $10,000,000
• B) $40,000,000
• C) $50,000,000
• D) $100,000,000
• E) $510,000,000

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Definitions:

Deviant Behavior

Actions or behaviors that violate societal norms or values, potentially leading to negative social responses.

Positivist Perspective

A philosophical approach that emphasizes empirical data and scientific methodology to understand and explain social phenomena.

Constructionist Perspective

A theoretical approach that suggests realities are socially constructed through human interpretation and interaction.

Definitions

Explanations of the meanings of words or phrases, especially in a specific context or field.