A Single Chartered Bank Has a Desired Reserve Ratio of 25

question 80

Multiple Choice

A single chartered bank has a desired reserve ratio of 25 percent.If the bank has no excess reserves initially and $5,000 cash is deposited in the bank, it can increase its loans by a maximum of:

• A)$1,250
• B)$120,000
• C)$5,000
• D)$3,750

---

Definitions:

External Locus

A belief that one's life events are largely determined by external factors, forces, or agents beyond one's control.

Emotion-Focused Coping

A coping strategy that involves identifying and expressing emotions associated with stress and seeking emotional support from others, rather than directly addressing the source of stress.

Adaptation-Level Phenomenon

The psychological process by which an individual's expectations and standards adjust based on past experiences, influencing their perception of new stimuli.

Internal Locus

The belief that one has control over their life events and outcomes, rather than external forces having that control.