Suppose That You Deposit $2,000 in Your Bank and the Required

question 225

Multiple Choice

Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent.The maximum loan your bank can made as a direct result of your deposit is

• A)$200.
• B)$1,800.
• C)$2,000.
• D)$20,000.

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Definitions:

Hypothalamus

A region of the brain that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Anterior Pituitary

A glandular portion of the pituitary gland that produces and secretes hormones regulating various bodily functions.

Follicular Cells

Epithelial cells in the thyroid gland that produce and secrete thyroid hormones Thyroxine (T4) and Triiodothyronine (T3).

Parafollicular Cell

Cells in the thyroid gland that produce calcitonin, a hormone that regulates calcium levels in the blood.