Multiple Choice
Suppose a bank has checkable deposits of $100,000 and the required reserve ratio is 20 percent. If the bank currently has $100,000 in reserves, it could lend out as much as:
A) $100,000.
B) $400,000.
C) $80,000.
D) $20,000.
Correct Answer:
Verified
Correct Answer:
Verified
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