If a Bank Has $100,000 of Deposits,a Required Reserve Ratio

question 50

Multiple Choice

If a bank has $100,000 of deposits,a required reserve ratio of 20 percent,and $40,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A) $30,000.
• B) $25,000.
• C) $20,000.
• D) $10,000.

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Definitions:

Social Distance

A preventive measure implemented to reduce the spread of contagious diseases by maintaining physical space between individuals.

Public Distance

The physical distance considered appropriate or normal for interactions among strangers or in formal settings, typically about 12 feet or more.

Intimate Zone

A personal space area, typically reserved for close friends, family members, or romantic partners, characterizing the physical proximity individuals are comfortable with during private interactions.

Miscarriage

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically before 20 weeks of gestation.