If a Bank Has Required Reserves of $27,000,000 and Deposits

question 95

Multiple Choice

If a bank has required reserves of $27,000,000 and deposits of $90,000,000 with a required reserve ratio of 30%,how much can the bank lend out?

• A) $8,100,000
• B) $27,000,000
• C) $63,000,000
• D) $90,000,000
• E) $117,000,000

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Definitions:

Bronzing

The process of becoming bronze in color or appearance, often related to skin, metals, or effects of certain conditions.

Gonadotropic Hormones

Hormones that stimulate the activity of the gonads (testes and ovaries), including follicle-stimulating hormone (FSH) and luteinizing hormone (LH).

Ovaries

Female reproductive organs in which eggs (ova) are produced, along with the hormones estrogen and progesterone.

Estrogen

A group of hormones responsible for the development and regulation of the female reproductive system and secondary sexual characteristics.