Which of the Following Represents the Lending Capacity of an Individual

question 108

Multiple Choice

Which of the following represents the lending capacity of an individual (non-monopoly) bank?

• A)Required reserve ratio × total deposits.
• B)Total reserves - required reserves.
• C)(Total reserves - required reserves)× multiplier.
• D)1 ÷ (required reserve ratio).

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Definitions:

Nature and Roles

refers to the intrinsic characteristics of entities or individuals and the functions or positions they are expected to occupy in a system or society.

Dependence

The state of relying on or being controlled by someone or something else.

Incur Costs

To become subject to or bear expenses, often as a result of conducting activities, making decisions, or entering into transactions.

Norms and Values

Socially shared rules and expectations that guide behavior within a group, alongside the fundamental beliefs and ideals that bring a community together.