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:

Legislative Branch

The part of government responsible for making the laws, typically consisting of a parliament or congress.

Statutory Law

The assortment of rules and regulations put forth by legislatures.

Governing Authority

The organization, body, or individual that has the power to make and enforce rules, laws, and regulations within a specified jurisdiction.

Organized Society

A structured group of individuals governed by established laws, norms, and institutions.