The Accompanying Table Gives Data for a Commercial Bank or
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question 273

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { (1) } & \text { (2) } & \text { (3) } \\\hline \text { Legal Reserve Ratio (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } \\\hline 10 & \$ 40,000 & \$ 10,000 \\\hline 20 & 40,000 & 10,000 \\\hline 25 & 40,000 & 10,000 \\\hline 30 & 40,000 & 10,000 \\\hline\end{array}$$ The accompanying table gives data for a commercial bank or thrift. When the legal reserve ratio is 10 percent, the money-creating potential of this single bank is

• A) $0.
• B) $6,000.
• C) $30,000.
• D) $60,000.

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Definitions:

Berlin

The capital and largest city of Germany, known for its historical significance, cultural heritage, and as a center of political power and innovation.

Soviet Zone

The area of Eastern Europe that was under the influence and control of the Soviet Union after World War II, including parts of Germany, Poland, and other countries.

Josip Broz

Commonly known as Tito, a Yugoslav communist revolutionary and statesman who served as the Prime Minister and later President of Yugoslavia.

Communist Government

A form of government where the state owns and controls the major means of production and there is no private property, aiming to achieve a classless society.