Suppose Bank a Holds $200 of Reserves, Has Deposits of $1000

question 573

Multiple Choice

Suppose Bank A holds $200 of reserves, has deposits of $1000, and the desired reserve ratio is 20 percent. How many deposits can Bank A create?

• A) zero, because Bank A has no excess reserves
• B) $200
• C) $800
• D) $400

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Definitions:

Third South Carolina Regiment

An infantry regiment from South Carolina that served in the Continental Army during the American Revolutionary War, noted for its diversity and integration efforts.

Prisoner-of-War Status

A designation given to soldiers and other combatants captured by an enemy during wartime, affording them certain protections under international law and conventions.

President Lincoln

Abraham Lincoln, the 16th President of the United States, who led the country through its Civil War and emancipated the slaves through the issuance of the Emancipation Proclamation.

Captured Black Soldiers

Refers to African American soldiers who were taken as prisoners of war, often facing harsher treatment and discrimination compared to their white counterparts.