A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement.
A) It has $80 in reserves and $9,920 in loans.
B) It has $800 in reserves and $9,200 in loans.
C) It has $1,250 in reserves and $8,750 in loans.
D) It has $8,000 in reserves and $2,000 in loans.
Correct Answer:
Verified
Q174: A bank loans Benjamin's Print Shop $130,000
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