If a Bank Had a Desired Reserve Ratio of 10

question 100

Multiple Choice

If a bank had a desired reserve ratio of 10 percent and excess reserves of $2000,what is the largest loan it could legally extend?

• A)$200
• B)$1800
• C)$2000
• D)$20 000

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Definitions:

Carter Administration

The period of U.S. governance under President Jimmy Carter from 1977 to 1981, marked by efforts in energy conservation, human rights promotion, and diplomatic initiatives.

Inflation

An economic condition characterized by a general increase in prices and decrease in the purchasing value of money.

President Ford

Gerald Ford became the 38th President of the United States, serving from 1974 to 1977, following the resignation of Richard Nixon.

President Carter

Refers to James Earl Carter Jr., the 39th President of the United States, serving from 1977 to 1981, known for his emphasis on peace, human rights, and environmental issues.