A Bank Has $8,000 in Deposits and $6,000 in Loans

question 120

Multiple Choice

A bank has $8,000 in deposits and $6,000 in loans. It has loaned out all it can, given the reserve requirement. It follows that the reserve requirement is

• A)2.5 percent.
• B)33.3 percent.
• C)25 percent.
• D)75 percent.

---

Definitions:

Fallacious Arguments

Reasoning that contains flaws in logic or premise, leading to invalid conclusions or misleading assertions.

Evaluative Adjectives

Adjectives that express a value judgment or assessment about the noun they modify.

Premises

Statements or propositions upon which an argument is based or from which a conclusion is drawn.

Claims

Statements or assertions made about a belief, policy, or proposition that are typically supported by evidence and reasoning.