Suppose a Chartered Bank Has $6,000 in Chequable Deposits and the Desired

question 51

Multiple Choice

Suppose a chartered bank has $6,000 in chequable deposits and the desired reserve ratio is 0.2.What is the maximum amount of money this single bank can lend?  

• A) $1,200 
• B) $4,800 
• C) $6,000 
• D) $30,000

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Definitions:

Selectively Permeable

A property of cell membranes that allows some substances to pass through while blocking others.

Glial Cells

Glial cells, also known as glia, are non-neuronal cells in the central nervous system that support, protect, and nourish neurons, playing crucial roles in brain function.

Neural Connections

The links between neurons that are the basis for transmitting signals throughout the nervous system.

Action Potential

A temporary reversal of electrical polarization of the membrane of a nerve cell or muscle cell, enabling the transmission of signals.