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If the Reserve Ratio Is 5 Percent and a Bank

question 1

Multiple Choice

If the reserve ratio is 5 percent and a bank receives a new deposit of $500,by how much can the bank increase its new loans?

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Definitions:

O'Keeffe

An American artist, Georgia O'Keeffe, renowned for her large-format paintings of natural forms, especially flowers and landscapes.

New York, Night

A phrase evoking the vibrant nightlife and illuminated cityscape of New York City during the nighttime.

Imposing Mass

A structure or object that is large and impressive in appearance or size.

American Gothic

A painting by Grant Wood from 1930, depicting a farmer and his daughter standing in front of a house, iconic for its portrayal of rural American life.

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