Assuming a Reserve Ratio of 10 Percent, If a Bank

question 304

Multiple Choice

Assuming a reserve ratio of 10 percent, if a bank receives $100,000 in deposits how much can the bank loan out?

• A)$90,000
• B)$100,000
• C)$110,000
• D)$10,000

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Definitions:

Ethical Dilemmas

Situations where individuals must choose between two conflicting moral principles or values.

Managers

Individuals responsible for overseeing and directing the activities of a group or organization to achieve its goals.

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's actions and decisions.

Entitlements

Rights or benefits guaranteed to individuals or groups, often by law or contractual arrangement.