-The Table Above Represents a Bank's T-Account

question 102

Multiple Choice

-The table above represents a bank's T-account.Suppose it is the only bank in town and individuals in town hold no cash.Assuming the reserve ratio is 10%,what will be the bank's deposits and reserves at the end of the money creation process?

• A) Deposits will equal $200,000 and reserves will equal $20,000.
• B) Both deposits and reserves will equal $200,000.
• C) Deposits will equal $2,000,000 and reserves will equal $200,000.
• D) Both deposits and reserves will equal $2,000,000.
• E) Both deposits and reserves will equal $2,200,000.

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Definitions:

Hypertension

A chronic medical condition characterized by elevated blood pressure levels in the arteries.

Prehypertension

A condition where blood pressure is higher than normal, but not high enough to be classified as hypertension.

Orthostatic Hypotension

A form of low blood pressure that happens when standing up from sitting or lying down, leading to dizziness or fainting.

Nicotine

A stimulant substance found in tobacco products that can lead to addiction and various health issues.