Suppose a Transaction Changes a Bank's Balance Sheet as Indicated

question 212

Multiple Choice

Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent. $$\begin{array} { | c | c | } \hline \text { Assets } & \text { Liabilities } \\\hline \text { Reserves } + \$ 2,000 & \text { Deposits } + \$ 2,000 \\\hline\end{array}$$ As a result of the transaction,the bank can make a maximum loan of

• A)$0.
• B)$200.
• C)$1,800.
• D)$2,000.

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Definitions:

Psychological Test

A psychological test is a standardized measure used to evaluate an individual's mental and emotional characteristics, abilities, and processes.

Standardised Measure

An assessment tool that is consistently applied and scored in the same way across different individuals to allow for comparability.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests that individuals have eight or more relatively independent intelligences.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that intelligence is not a single general ability but consists of various distinct dimensions including linguistic, logical-mathematical, spatial, and more.