If a Bank Had Demand Deposits of $50 Million and It

question 33

Multiple Choice

If a bank had demand deposits of $50 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?

• A)​$50 million
• B)​$37.5 million
• C)​$25 million
• D)​$12.5 million

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Definitions:

Bipedal Nature

Referring to the characteristic of using two legs for walking, standing, and running, typical of humans and some other species.

Innate Behaviors

Instinctive actions and reactions that organisms are born with, not learned through experience, such as reflexes or fixed-action patterns.

Haplodiploidy

A mechanism through which sex is determined by the number of copies of each chromosome that an individual receives. Offspring formed from the fertilization of an egg by a sperm (that is, diploids) are female; those formed from unfertilized eggs (that is, haploids) are male.

Eusocial Behavior

The highest level of social organization, characterized by cooperative brood care, division of labor, and overlapping generations within a colony of animals.