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If a Bank Has $200,000 of Deposits,a Required Reserve Ratio

Question 35

Multiple Choice

If a bank has $200,000 of deposits,a required reserve ratio of 20 percent,and $80,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is


A) $50,000.
B) $40,000.
C) $30,000.
D) $25,000.

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