Suppose the Following Information for Trust Bank,reserves Are $1,000 and the Target

question 2

Essay

Suppose the following information for Trust Bank,reserves are $1,000 and the target reserve ratio is 25%.If the bank is fully loaned up,what is the amount of loans? Assuming that the bank has no other assets or liabilities.

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Definitions:

Ethical Theory

A systematic and philosophical approach to understanding, analyzing, and distinguishing right from wrong behavior.

Distributive Justice

The ethical principle concerned with the fair allocation of resources among members of a community.

Social Egalitarian

Advocates for equal rights, opportunities, and treatment for all people in a society.

Libertarianism

A political philosophy that emphasizes freedom, autonomy, and voluntary association, with a significant focus on limiting the scope and authority of government.