Assume the Following: a 10 Percent Required Reserve Ratio, Banks

question 6

Multiple Choice

Assume the following: a 10 percent required reserve ratio, banks do not hold excess reserves, and the public does not hold cash. Also assume that First Bank just received a checking deposit of $500. What is the maximum amount of new loans First Bank can make?

• A)$400
• B)$450
• C)$2,500
• D)$5,000

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Definitions:

Job Satisfaction

The level of contentment employees feel about their jobs, which can affect their performance and overall well-being.

Work Schedule

The allocated times and days set for work tasks and responsibilities within a job or profession.

Satisfaction Scores

Numeric evaluations or ratings provided by individuals to express their level of satisfaction with a service, product, or experience.

Human Resources Psychologist

A professional specializing in applying psychological principles to workplace issues, including talent management, organizational behavior, and employee wellbeing.