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If a Bank Has $6,000 in Checkable Deposits and the Required

Question 18

Multiple Choice

If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2, then the bank can lend:

A) exactly $4,000.
B) about $16,000.
C) no more than $4,800.
D) about $13,000.
E) exactly $1,000.

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