If a Bank Has $6,000 in Checkable Deposits and the Required

question 57

Multiple Choice

If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2,then the bank can lend:

• A)$4,000.
• B)$16,000.
• C)no more than $4,800.
• D)no less than $3,000.
• E)$1,000.

---

Definitions:

Physiological Basis

The underlying physical and biological principles that explain an organism's behavior or bodily function.

Dissociative Identity Disorder

A severe form of dissociation, a mental process which produces a lack of connection in a person's thoughts, memory, and sense of identity.

Hypnosis

A trance-like state of heightened focus and concentration often used for therapeutic purposes, typically induced by another person.

Role-playing

The act of assuming a role different from one's own life to explore different perspectives or practice skills in a safe environment.