-Refer to Table 15

question 100

Multiple Choice

-Refer to Table 15.1. If the reserve requirement is 25 percent, what is the maximum loan that can be made by the bank?

• A) $225
• B) $375
• C) $425
• D) $475
• E) $750

---

Definitions:

Tax-Free Amount

The portion of income or a financial distribution that is not subject to taxation by authorities.

Roth IRA

An individual retirement account allowing post-tax contributions with the benefit of tax-free withdrawals under certain conditions.

Withdrawal Requirements

Mandatory rules governing the minimum amounts that must be withdrawn from retirement accounts after reaching a certain age.

Taxable

Describes income or transactions subject to taxation under federal, state, or local laws.