Multiple Choice
Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Union Bank has no excess reserves. If a new customer deposits $50,000, the bank could extend new loans up to a maximum of
A) $10,000.
B) $40,000.
C) $50,000.
D) $250,000.
Correct Answer:
Verified
Correct Answer:
Verified
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