Initially a Bank Has a Minimum Reserve Requirement of 15

question 64

Multiple Choice

Initially a bank has a minimum reserve requirement of 15 percent and no excess reserves.If $200,000 is deposited in the bank,then ceteris paribus:

• A) The bank can increase its loans by $30,000.
• B) The bank can increase its loans by $230,000.
• C) Excess reserves will increase by $170,000.
• D) Required reserves will increase by $200,000.

---

Definitions:

Organizations

Entities comprised of multiple people working together towards common goals or objectives, often structured to enhance efficiency and effectiveness.

B Lymphocytes

A type of white blood cell of the lymphocyte subtype that plays a significant role in the body's immune response by producing antibodies.

T Lymphocytes

A type of white blood cell crucial for the immune response, helping to protect the body against pathogens and cancer cells.

Bacterial Infections

Diseases caused by bacteria, microorganisms that can lead to various health issues ranging from mild to severe infections in humans and animals.