If a Bank Has Required Reserves of $27,000,000,excess Reserves of $41,000,000,and

question 141

Multiple Choice

If a bank has required reserves of $27,000,000,excess reserves of $41,000,000,and deposits of $90,000,000 with a required reserve ratio of 30 percent,how much can the bank lend out?

• A) $8,100,000
• B) $27,000,000
• C) $41,000,000
• D) $90,000,000
• E) $117,000,000

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Definitions:

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding across the lifespan.

Abstract Thought

The ability to think about objects, principles, and ideas that are not physically present.

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring from age 7 to 12, where children gain the ability to think logically about concrete events.

Logical Operations

Mental processes that follow systematic patterns of thinking, allowing for problem-solving and reasoning based on established rules.