Multiple Choice
A bank has a 10 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement.
A) It has $40 in reserves and $3,960 in loans.
B) It has $400 in reserves and $3,600 in loans.
C) It has $444 in reserves and $3,556 in loans.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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