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Suppose a Chartered Bank Has $6,000 in Chequable Deposits and the Desired

Question 51

Multiple Choice

Suppose a chartered bank has $6,000 in chequable deposits and the desired reserve ratio is 0.2.What is the maximum amount of money this single bank can lend?  


A)  $1,200 
B)  $4,800 
C)  $6,000 
D)  $30,000

Correct Answer:

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