Suppose a Bank Faces a 10% Required Reserve Ratio and It

question 322

Multiple Choice

Suppose a bank faces a 10% required reserve ratio and it has $100 in required reserves. If it is fully loaned out, what is the amount of deposits in this bank?

• A)$900
• B)$10
• C)$1,000
• D)$10,000

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Definitions:

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex behaviors including planning, decision making, and moderating social behavior.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any need for learning or previous experience.

Turbulent Conditions

Situations characterized by disorder, instability, or rapid changes that can create challenges or uncertainty.