Suppose a Bank Has $100 Million in Checking Account Deposits

question 106

Multiple Choice

Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent.If the Federal Reserve reduces the required reserve ratio to 8 percent,then the bank can make a maximum loan of

• A)$0.
• B)$2 million.
• C)$8 million.
• D)$10 million.

---

Definitions:

Demographics

Statistical data relating to the population and particular groups within it, often used for marketing to understand target audiences better.

Marketing

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Value-Based Marketing

A marketing approach that emphasizes delivering products and services that offer customers the best value for their money.

Competitors Offer

The range of products, services, and prices presented by businesses in the same market niche or industry as one's own operation.