Multiple Choice
Suppose a bank has a 10 percent reserve ratio, $2000 in deposits, and it loans out all it can, given the reserve ratio. Which of the following describes the bank's assets?
A) It has $20 in reserves and $1800 in loans.
B) It has $20 in reserves and $1980 in loans.
C) It has $200 in reserves and $1800 in loans.
D) It has $200 in reserves and $2000 in loans.
Correct Answer:
Verified
Correct Answer:
Verified
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