If a Bank Has $1 Million in Demand Deposits,$350 000

question 145

Multiple Choice

If a bank has $1 million in demand deposits,$350 000 in reserves,and desires a 30 percent reserve ratio,how much money could a bank directly create by loaning out its excess reserves?

• A)$50 000
• B)$300 000
• C)$350 000
• D)$700 000

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