Table 13.2 ABC Bank Balance Sheet
Refer to Table 13.2.With total reserves of $80,000 and a required reserve ratio of 25 percent,ABC Bank could support maximum transactions account balances of
A) $20,000.
B) $320,000.
C) $50,000.
D) $2,000,000.
Correct Answer:
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A)Further limits deposit creation.
B)Increases
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