A Bank Currently Has Checkable Deposits of $100,000, Total Reserves

question 78

Multiple Choice

A bank currently has checkable deposits of $100,000, total reserves of $30,000, and loans of $70,000. If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:

• A) $10,000.
• B) $15,000.
• C) $75,000.
• D) $5,000.

Distinguish between different types of franchises and their specific legal considerations.

Learn about the liability and financial implications for sole proprietors.

Understand the legal protections and obligations for franchisees, including wrongful termination and the importance of good faith.

Know the significance of disclosure documents in franchising and the legal requirement to provide comprehensive information to potential franchisees.

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Definitions:

Marijuana

A psychoactive drug derived from the Cannabis plant, used for medical or recreational purposes, known for its effects such as euphoria, relaxation, and altered sensory perceptions.

Cannabis

Substance produced from the varieties of the hemp plant, Cannabis sativa. It causes a mixture of hallucinogenic, depressant, and stimulant effects.

Illegal

Activities or actions that are prohibited by law or statute, subject to penalties or sanctions.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for effects such as relaxation and altered perception.