Multiple Choice
If a bank had demand deposits of $80 million and it desired a 25 percent reserve ratio,what is the maximum amount of dollars' worth of loans it would be able to have?
A) $20 million
B) $40 million
C) $60 million
D) $80 million
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q33: Assume that the desired reserve ratio is
Q34: The higher the interest rate paid on
Q35: A chartered bank has $1 000 000
Q36: Scenario 11-1<br>A bank's assets consist of $500
Q38: If a bank had demand deposits of
Q39: What effect would an increase in demand
Q40: What is money?<br>A)a highly illiquid asset<br>B)a widely
Q41: First Safety,a chartered bank,has $6 000 000
Q42: Which of the following is NOT a
Q210: People continue to value money because they