If a Bank Receiving a New Deposit of $200 000

question 79

Multiple Choice

If a bank receiving a new deposit of $200 000 would be able,as a result,to increase its lending by,at most,$150 000,what is the desired reserve ratio?

• A)4 percent
• B)25 percent
• C)40 percent
• D)50 percent

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Definitions:

Documentation Terms

Phrases and vocabulary used in records or reports to describe or detail processes, procedures, or conditions accurately.

Penetration

The action or process of making a way through or into something; in medical terms, often refers to the breach of a body part or organ.

Declined

Refused or rejected a proposal, invitation, or opportunity.

Nonjudgmental

Adopting an attitude or stance that avoids making judgments, especially moral or value judgments about others.