Suppose That Initially a Bank Has Excess Reserves of $800

question 101

Multiple Choice

Suppose that initially a bank has excess reserves of $800 and the reserve ratio is 20%. Then Andy deposits $1,000 of cash in his checking account and the bank lends $600 to Molly. That bank can lend an additional:

• A) $200.
• B) $1,000.
• C) $800.
• D) $2,400.

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Definitions:

Wheelchair

A chair mounted on wheels for the use of individuals who cannot walk or have difficulty walking.

Examination Table

A piece of medical equipment used in healthcare settings for patients to sit or lie on during a medical exam.

Gait Belt

A safety device used in healthcare settings, designed to help patients who have difficulty walking by providing a secure grip for caregivers during transfers or ambulation.

Sitting Position

A way of arranging the body so the weight is supported by the buttocks and thighs, with the torso upright.