If a Bank Receives an Additional Deposit of $50,000 and the Desired

question 434

Essay

If a bank receives an additional deposit of $50,000 and the desired reserve ratio is 20 percent, what is the amount of new loans the bank can make?

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Definitions:

American National Railroad

A hypothetical or specific railroad company operating within the United States, involved in the transportation of goods and passengers across the nation. (Note: As of my last update, there's no specific entity known as "American National Railroad," this description assumes a generic interpretation.)

Mass Consumption

A large-scale demand for products or services by a wide range of consumers within an economy.

Transcontinental Railroad

A continuous rail line that spans a continent, typically referring to the major rail networks connecting the east and west coasts of the United States.

Protective Tariffs

These are taxes imposed on imported goods to protect domestic industries from foreign competition.