If a Bank Has $6,000 in Checkable Deposits and the Required

question 18

Multiple Choice

If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2, then the bank can lend:

• A) exactly $4,000.
• B) about $16,000.
• C) no more than $4,800.
• D) about $13,000.
• E) exactly $1,000.

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Definitions:

Environmental Conditions

The various physical and biological factors that affect the living conditions of organisms in an ecosystem, including climate, terrain, water supply, and availability of food and predators.

Nonoverlapping

Pertaining to groups, generations, or time frames that do not intersect or share common elements.

Regulatory Regions

Specific sequences in DNA that control the level and timing of gene expression, critical for proper development and function in organisms.

Gene Variation

The differences in sequences of DNA among individuals in a population, which contributes to the genetic diversity of a species.