If a Bank Has a Required Reserve Ratio of 10%,excess

question 88

Multiple Choice

If a bank has a required reserve ratio of 10%,excess reserves of $10 million,and deposits of $500 million,how much can the bank lend out?

• A) $10 million
• B) $40 million
• C) $50 million
• D) $100 million
• E) $510 million

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Definitions:

Incompatible Stimuli Method

A technique used in behavior modification where a behavior that is undesired is matched with an incompatible response in order to reduce or eliminate it.

Smoking

The action of inhaling and exhaling the smoke of burning tobacco; can lead to addiction and various health issues.

Gum Chewing

The act of chewing gum, which can be studied in psychology for its effects on concentration, stress reduction, or habit formation.

Candy Bar

A bar-shaped confectionery that typically includes ingredients such as chocolate, caramel, nuts, and nougat.