A Bank Has $8,000 in Checkable Deposits

question 84

Multiple Choice

A bank has $8,000 in checkable deposits. If the reserve requirement is 0.2, _____.

• A)the bank can lend $8,000
• B)the bank cannot lend more than $6,400
• C)the bank cannot lend more than $5,400​
• D)the bank can lend $1,600
• E)the bank can lend $7,000

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