If a Bank Had the Reserve Requirement of 10 Percent

question 179

Multiple Choice

If a bank had the reserve requirement of 10 percent and excess reserves of $2,000, the largest loan it could legally extend would be:

• A)​$200.
• B)​$1,800.
• C)​$2,000.
• D)​$20,000.

Apply creative problem-solving strategies.

Recognize the importance of persistence and asking for help in problem-solving.

Learn how to design and implement surveys for research or project purposes.

Appreciate the significance of Bloom's Taxonomy in the problem-solving process.

---

Definitions:

Thomas Robert Malthus

An English cleric and scholar known for his theories on population growth, arguing that population increases geometrically while food supply increases arithmetically, leading to inevitable population checks.

Per Capita GDPs

The measure of a country's economic output that accounts for its number of people, essentially dividing the GDP by the population.

Industrial Nations

Industrial nations are those with highly developed industries and infrastructures, often having significant technological advancements and economic productivity.

Less Developed Countries

Nations with low levels of economic resources and industrial basis, often characterized by low GDP per capita, poor infrastructure, and a low Human Development Index.