If a Bank Had $200 Million in Demand Deposits and Faced

question 31

Multiple Choice

If a bank had $200 million in demand deposits and faced a 40 percent reserve requirement, it would be required to hold ____ as reserves and could have a total amount of loans issued up to ____.

• A)​$120 million; $80 million
• B)​$80 million; $120 million
• C)​$200 million; $500 million
• D)​$500 million; $200 million

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Definitions:

Older Adults

Individuals in a later stage of life, often categorized as being aged 65 years and older, experiencing various physiological and social changes.

Elongated Fibers

Refers to cells that are significantly longer than they are wide, often found in muscle and connective tissues.

Muscle Tissue

A type of tissue composed of fibers capable of contracting to effect bodily movement.

Adipocytes

These are fat cells in the body that store energy in the form of lipids.