Suppose Bank a Holds $200 of Reserves, Has Deposits of $1000

question 448

Multiple Choice

Suppose Bank A holds $200 of reserves, has deposits of $1000, and the desired reserve ratio is 15 percent. How many loans can Bank A create at Bank A?

• A) zero, because Bank A has no unplanned reserves
• B) $200
• C) $50
• D) $850

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Definitions:

Workplace Productivity

The efficiency with which employees complete tasks and responsibilities within their work environment, contributing to the overall productivity of the organization.

Unionization Effects

The impact that the process of organizing workers into unions can have on labor practices, wages, work conditions, and business operations.

Job Satisfaction

relates to the level of fulfillment, contentment, or happiness that an individual derives from their job, often influencing productivity and loyalty.

Unionized Workers

Workers who are part of a labor organization that acts on their behalf in bargaining sessions with employers.