Multiple Choice
A bank has a 10 percent reserve requirement, $5,000 in deposits, and has loaned out all it can given the reserve requirement.
A) It has $50 in reserves and $4,950 in loans.
B) It has $500 in reserves and $4,500 in loans.
C) It has $555 in reserves and $4,445 in loans.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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