Assume the Reserve Requirement Is 10% and All Banks Are

question 57

Multiple Choice

Assume the reserve requirement is 10% and all banks are fully loaned up.If a new deposit of $10,000 is made into Bank X,with this deposit Bank X can make new loans of:

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

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Definitions:

Durkheim

A reference to Émile Durkheim, a pioneering French sociologist who contributed foundational theories on social order, social solidarity, and the study of religion and suicide.

Corporate Sentencing Guidelines

Policies and procedures for determining the sentencing of corporations convicted of federal crimes, including fines and remedial actions.

Base Fine

A fixed amount of money established as the starting point for fines related to violations or offenses, which can be adjusted based on specific circumstances.

Mala Prohibita

Acts that are crimes because legislation defines them as such, despite not being inherently evil or immoral.