If the Fed Buys a $100,000 Government Security from a Bank

question 242

Multiple Choice

If the Fed buys a $100,000 government security from a bank when the desired reserve ratio is 20 percent and the currency drain ratio is 5 percent,the bank can loan a maximum of

• A)$75,000.
• B)$80,000.
• C)$100,000.
• D)$95,000.
• E)$85,000.

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Definitions:

Ecotourism

Travel focused on sustainable, respectful exploration and conservation of natural environments.

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem, encompassing genetic, species, and ecosystem diversity.

Tropical Rain Forests

Dense forests located in the tropics, characterized by high rainfall, significant biodiversity, and a canopy structure.

Conservation Biology

A multidisciplinary field that aims to protect and manage biodiversity and natural resources, focusing on conservation of species, habitats, and ecosystems.