If a Bank Has a Required Reserve Ratio of 30

question 87

Multiple Choice

If a bank has a required reserve ratio of 30 percent,excess reserves of $45,000,000,and deposits of $100,000,000,how much can the bank lend out?

• A) $13,500,000
• B) $30,000,000
• C) $43,500,000
• D) $45,000,000
• E) $145,000,000

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Definitions:

Organization Members

Individuals who belong to and participate in the activities of an organization, contributing to its goals and operations.

Stability

The state of being steady and firm, often referring to economic or social systems.

Sending Information

Sending information refers to the act of transmitting data, messages, or communications from one entity to another through various means such as verbal, written, or electronic channels.

Organization's Model

The conceptual framework that outlines the structure, operations, and strategy of an organization.