If a Bank Has $1 Million in Checkable Deposits and the Required

question 87

Multiple Choice

If a bank has $1 million in checkable deposits and the required reserve ratio is 0.4,then the bank can lend

• A)$400,000
• B)$1 million
• C)no more than $600,000
• D)no less than $300,000
• E)$500,000

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