Suppose a bank has $300,000 in deposits and a required reserve ratio of 15 percent.Then required reserves are
A) $4,500.
B) $45,000.
C) $255,000.
D) $300,000.
Correct Answer:
Verified
Q51: The ratio of a bank's total reserves
Q52: Deposit creation occurs when
A)A bank lends money.
B)A
Q53: One of the main functions of banks
Q54: Which of the following reflects the concept
Q55: The term fractional reserves refers to
A)The fact
Q57: Required reserves represent
A)A leakage from the flow
Q58: Suppose a bank has $500,000 in deposits
Q59: The banking system can lend the sum
Q60: The various money supply measures (M1 and
Q61: Initially a bank has a required reserve
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