If a Bank Has Required Reserves of $45,000,000,excess Reserves of $12,000,000,and

question 18

Multiple Choice

If a bank has required reserves of $45,000,000,excess reserves of $12,000,000,and deposits of $90,000,000 with a required reserve ratio of 50%,how much can the bank lend out?

• A) $12,000,000
• B) $45,000,000
• C) $57,000,000
• D) $102,000,000
• E) $147,000,000

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Definitions:

Repeating Items

The act of presenting the same content or material multiple times to improve memory retention or emphasize importance.

Allan Baddeley

A cognitive psychologist best known for his work on the model of working memory.

Short-term Memory

A component of memory where small amounts of information can be stored for a short period of time, typically seconds to minutes.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.