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Suppose a Bank Has $300,000 in Deposits, a Reserve Ratio

Question 77

Multiple Choice

Suppose a bank has $300,000 in deposits, a reserve ratio of 5 percent, and bank reserves of $45,000. This bank can make new loans in the amount of

A) $345,000.
B) $45,000.
C) $30,000.
D) $15,000.

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