Suppose a Bank Has a 10 Percent Reserve Ratio,$3000 in Deposits,and

question 36

Multiple Choice

Suppose a bank has a 10 percent reserve ratio,$3000 in deposits,and it loans out all it can,given the reserve ratio.Which of the following describes the bank's assets?

• A) It has $30 in reserves and $2700 in loans.
• B) It has $30 in reserves and $2970 in loans.
• C) It has $300 in reserves and $2700 in loans.
• D) It has $300 in reserves and $3000 in loans.

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Definitions:

Daily Living

The routine activities that individuals perform every day without assistance, such as eating, bathing, and dressing.

Balances Checkbook

The activity of reconciling one's checkbook ledger with the bank statements to ensure accuracy and consistency in financial records.

Cleans the House

The act of removing dirt, clutter, and unnecessary items, and organizing the living space to maintain cleanliness and order.

Instrumental Activities

Tasks necessary for independent living, such as managing finances, transportation, shopping, and housekeeping, often used to assess functional ability.