Suppose That You Deposit $2,000 in Your Bank and the Required

question 225

Multiple Choice

Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent.The maximum loan your bank can made as a direct result of your deposit is

• A)$200.
• B)$1,800.
• C)$2,000.
• D)$20,000.

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Definitions:

Prejudice

A preconceived opinion or judgment made without adequate knowledge or examination of the facts, often based on stereotypes.

Ethnic Minority Status

Refers to the classification of individuals who belong to groups with distinct cultural, racial, or national backgrounds that are smaller in number compared to the majority population within a society or country.

SES

Short for Socioeconomic Status, which refers to an individual's or group's economic and social position in relation to others, based on income, education, and occupation.

Asian American

A person of Asian descent living in the United States, encompassing a wide range of cultures, languages, and backgrounds.