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Suppose a Transaction Changes a Bank's Balance Sheet as Indicated

Question 125

Multiple Choice

Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent. As a result of the transaction,the bank can make a maximum loan of A) $0. B) $200. C) $1,800. D) $2,000. As a result of the transaction,the bank can make a maximum loan of


A) $0.
B) $200.
C) $1,800.
D) $2,000.

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