Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent.
As a result of the transaction, the bank can make a maximum loan of
A) $0.
B) $200.
C) $1,800.
D) $2,000.
Correct Answer:
Verified
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A)measures flows of income and
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A)required reserves
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A)vault cash.
B)deposits
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A)short-term borrowing.
B)long-term
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