Suppose You Deposit $1,000 Cash in Your Checking Account at a Bank

question 175

Multiple Choice

Suppose you deposit $1,000 cash in your checking account at a bank. If the bank is loaned up and if the required reserve ratio is 10%, the maximum amount that the bank can lend now, following your deposit is

• A) $100.
• B) $900.
• C) $1,000.
• D) $10,000.

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Definitions:

Singing Career

The professional pursuit of performing music vocally, which may include live performances, recording, and collaborating with other musicians.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in maintaining the business.

Intent Of Partners

The shared objectives or purposes behind forming a partnership among business participants.

Type Of Business

Classification that describes the method a company conducts business, serving as a way to categorize companies based on their activities or market sectors.