If a Bank Has $6,000 in Checkable Deposits and the Required

question 57

Multiple Choice

If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2,then the bank can lend:

• A)$4,000.
• B)$16,000.
• C)no more than $4,800.
• D)no less than $3,000.
• E)$1,000.

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