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:

Unemployment Tax

Taxes paid by employers to fund unemployment insurance programs, offering temporary financial assistance to unemployed workers.