Consider the Following T-Account for a Bank If the Required Reserve Ratio Is 20 Percent and the l

question 235

True/False

Consider the following T-account for a bank:
$$\begin{array} { | l | l | } \hline { \text { Assets } } & { \text { Liabilities } } \\\hline \text { Reserves } \quad \$ 1,000 & \text { Deposits } \$ 5,000 \\\hline \text { Loans } \quad \$ 4,000 & \\\hline\end{array}$$
If the required reserve ratio is 20 percent and the bank is holding no excess reserves,the bank at this point can make no more loans.

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Contextual Intelligence

The capacity to recognize the boundaries of what we know and adjust that understanding to suit a setting other than where it originated.

Kinesthetic Intelligence

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