Multiple Choice
Suppose all banks desire a uniform reserve requirement of 20 percent and the Firsttown Bank has zero excess reserves.If a new customer deposits $10 000,how much in new loans can the bank now extend?
A) up to a maximum of $2000
B) up to a maximum of $8 000
C) up to a maximum of $10 000
D) up to a maximum of $50 000
Correct Answer:
Verified
Correct Answer:
Verified
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