Multiple Choice
Suppose a bank has a 20 percent reserve ratio, $2500 in deposits, and it loans out all it can, given the reserve ratio. Which of the following describes the bank's assets?
A) It has $50 in reserves and $$2500 in loans.
B) It has $50 in reserves and $2450 in loans.
C) It has $500 in reserves and $2000 in loans.
D) It has $500 in reserves and $2500 in loans.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Who chairs the Board of Directors of
Q8: If you deposit $100 into a demand
Q9: The banking system has $20 million in
Q10: Suppose that the reserve ratio is 5
Q13: When the Bank of Canada wants to
Q15: Which of the following is the function
Q16: The banking system has $20 million in
Q21: The use of money allows trade to
Q40: The Bank of Canada is a privately
Q166: Credit cards are not a medium of