Multiple Choice
Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
A) $2,000.
B) $8,000.
C) $9,000.
D) $10,000.
Correct Answer:
Verified
Correct Answer:
Verified
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