Multiple Choice
Suppose the reserve requirement is 10 percent. If a bank has $5 million of checkable deposits and actual reserves of $500,000, the bank
A) can safely lend out $500,000.
B) can safely lend out $5 million.
C) can safely lend out $50,000.
D) cannot safely lend out more money.
Correct Answer:
Verified
Correct Answer:
Verified
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