If Jose Deposits $2,000 in His Bank and the Desired

question 45

Multiple Choice

If Jose deposits $2,000 in his bank and the desired reserve ratio is 10 percent,what is the amount of new loans that the bank can make?

• A)$2,000
• B)$200
• C)$1,800
• D)$1,900
• E)$2,200

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Definitions:

Traditionalists

Individuals or groups who adhere to long-established practices, values, or trends, often resistant to change.

Individualists

Persons who prioritize personal independence and self-reliance, often valuing their own goals and motivations over those defined by groups or society.

Creativity

Innovation; the ability to use imagination and insight to produce new ideas, products, and processes; an important ability that can be enhanced by keeping an open mind, having a questioning attitude, and using a new-ideas system.

Direction

The point, objective, or targeted goal; the establishment of purpose as an essential leadership function.