If a Bank Has 1,000 Depositors, Each of Whom Deposits

question 120

Multiple Choice

If a bank has 1,000 depositors, each of whom deposits $1,000 in the bank, and the bank makes 100 loans of $10,000 each, then each depositor has contributed:

• A)$100 to each loan
• B)$1 to each loan
• C)$10 to each loan
• D)$1000 to each loan

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Definitions:

Buy American Campaign

A movement encouraging consumers to purchase goods made in the United States in order to support domestic businesses and labor.

Trade Balance

The difference between a country's exports and imports of goods and services.

U.S. Government

The federal government of the United States, a constitutional republic comprising the executive, legislative, and judicial branches.

Net Capital Outflow

The difference between the domestic country's sale of assets to foreigners and its purchase of assets from foreigners during a specific period.