If a Bank Has No Excess Reserves,the Reserve Requirement Is

question 166

Multiple Choice

If a bank has no excess reserves,the reserve requirement is 25%,and receives a $100,000 deposit,the bank can lend out

• A)$100,000.
• B)$75,000.
• C)$50,000.
• D)$0.

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Definitions:

Quit

To leave or stop doing something, often referring to a job, habit, or activity.

Vicarious Dissonance

A feeling of discomfort that arises when witnessing others engage in behaviors that conflict with one's own beliefs or attitudes.

Inoculation

The process of introducing a vaccine into the body to induce immunity against a specific disease.

Forewarning

Advance knowledge that one is to be the target of a persuasion attempt. Forewarning often produces resistance to persuasion.