Assume That the Reserve Requirement Is 20 Percent

question 77

Multiple Choice

Assume that the reserve requirement is 20 percent. First National Bank has vault cash and deposits with the Fed of $80 million, loans and securities of $320 million, and demand deposits of $400 million. First National:

• A)​could extend a maximum of $40 million of additional loans.
• B)​could extend a maximum of $20 million of additional loans.
• C)​could extend a maximum of $10 million of additional loans.
• D)​is not in a position to extend additional loans.

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Definitions:

Hemiplegia

Paralysis affecting one side of the body, typically caused by a brain injury like stroke.

Communication Deficits

Refers to difficulties or limitations in the ability to effectively exchange information, including speaking, listening, writing, or understanding.

Noxious Stimuli

Harmful or unpleasant sensations or factors that evoke a negative physiological or psychological response in organisms.

Cutaneous Stimulation

Stimulation applied to the skin surface to affect sensory nerves, often for therapeutic purposes, such as pain relief.