Multiple Choice
Suppose a bank has a 5 percent reserve ratio, $4000 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 $20 in reserves and $3980 in loans.
B) It has $200 in reserves and $3800 in loans.
C) It has $200 in reserves and $4000 in loans.
D) It has $5 in reserves and $3995 in loans.
Correct Answer:
Verified
Correct Answer:
Verified
Q110: Table 29-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4795/.jpg" alt="Table 29-1
Q113: The banking system has $20 million in
Q114: Suppose the reserve ratio is 10 percent,
Q116: If the reserve ratio is 7 percent
Q117: Which of the following best describes the
Q118: Which of the following best defines the
Q119: Draw a simple T-account for First National
Q120: Assume that banks do not hold excess
Q129: Gary's wealth is $1 million. Economists would
Q164: If you deposit $5000 into First Hawkeye