If a Bank Has Required Reserves of $27,000,000 and Deposits

question 95

Multiple Choice

If a bank has required reserves of $27,000,000 and deposits of $90,000,000 with a required reserve ratio of 30%,how much can the bank lend out?

• A) $8,100,000
• B) $27,000,000
• C) $63,000,000
• D) $90,000,000
• E) $117,000,000

---

Definitions:

Federal Wage-Hour Requirements

Regulations set by the government that establish minimum wage, overtime pay eligibility, and other standards for workers.

Interstate Commerce

Economic activities or transactions that cross state borders or affect more than one state, subject to federal regulation.

Overtime Pay

Additional compensation required by law or agreement for hours worked beyond the standard workweek.

State Law

Legislation that is enacted by a state's legislative body and applicable within that state, governing matters not reserved to the federal government.