If a Bank Had Demand Deposits of $50 Million and It

question 33

Multiple Choice

If a bank had demand deposits of $50 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?

• A)​$50 million
• B)​$37.5 million
• C)​$25 million
• D)​$12.5 million

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Definitions:

Maternal Depression

A mood disorder affecting mothers, characterized by persistent feelings of sadness, anxiety, and/or emptiness during pregnancy or after childbirth.

Child Maltreatment

Involves any act by a caretaker that results in harm or potential harm to a child, including physical, sexual, emotional abuse, or neglect.

Internal Working Model

A cognitive framework comprising mental representations for understanding the world, self, and others, which influences individuals' responses to their environment.

Mental Model

A framework or mindset that individuals use to understand and interpret the world around them.