Suppose That You Deposit $2,000 in Your Bank and the Desired

question 104

Multiple Choice

Suppose that you deposit $2,000 in your bank and the desired reserve ratio is 10 percent.The maximum loan your bank can made as a direct result of your deposit is

• A)$200.
• B)$1,800.
• C)$2,000.
• D)$2,222.
• E)$20,000.

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