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

question 9

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 loans at the end of the money creation process?

• A) $180,000.
• B) $200,000.
• C) $1,800,000.
• D) $2,000,000.
• E) $2,200,000.

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