If a Bank That Is Subject to a 10 Percent

question 167

Multiple Choice

If a bank that is subject to a 10 percent required reserve ratio has $20,000 in excess reserves, it can make new loans of:

• A) $2,000.
• B) $18,000.
• C) $20,000.
• D) $200,000.

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Definitions:

Ethical Problem

A dilemma or situation that requires an individual or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).