If the Bank of Waterloo Receives a $10,000 Deposit and the Reserve

question 155

Multiple Choice

If the bank of Waterloo receives a $10,000 deposit and the reserve requirement is 10 percent,how much can the bank loan out? (Assume that before the deposit this bank is just meeting its legal reserve requirement.)

• A)$1,000
• B)$9,000
• C)$10,000
• D)$11,000

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