If Joe Deposits $2,000 in His Bank and the Desired

question 52

Multiple Choice

If Joe deposits $2,000 in his bank and the desired reserve ratio is 10 percent, what is the amount of new loans that the bank can make?

• A) $2,000
• B) $200
• C) $1,800
• D) $1,900
• E) $2,200

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