If a Bank Has $200,000 of Deposits,a Required Reserve Ratio

question 35

Multiple Choice

If a bank has $200,000 of deposits,a required reserve ratio of 20 percent,and $80,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A) $50,000.
• B) $40,000.
• C) $30,000.
• D) $25,000.

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Definitions:

Ceiling Fresco

A painting technique where the artwork is applied directly onto the plaster of a ceiling while it is still wet.

Surrender of Breda

A painting by Diego Velázquez depicting the handing over of the Dutch city of Breda to the Spanish during the Eighty Years' War.

Spanish Military Successes

Historical victories and accomplishments achieved by the Spanish military, which have had a significant impact on Spain's national history and the course of world events.

Velázquez

Diego Velázquez was a leading artist of the Spanish Golden Age, acclaimed for his portraits of the Spanish royal family and other notable European figures.