Multiple Choice
A bank currently has checkable deposits of $100,000, total reserves of $30,000, and loans of $70,000. If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:
A) $10,000.
B) $15,000.
C) $75,000.
D) $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
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