If the required reserve ratio is 10 percent and a bank receives a new deposit for $100,000,then the:
A) bank must keep $5,000 in excess reserves.
B) bank's required reserves increase by $45,000.
C) bank's liabilities increase by $100,000.
D) bank can increase its loans by up to $50,000.
E) bank can increase its loans by up to $400,000.
Correct Answer:
Verified
Q28: Which of the following is true of
Q29: On a bank's balance sheet,the value of
Q30: A bank can legally hold reserves as:
A)gold
Q31: When a customer deposits $100 into a
Q32: Which of the following is a liability
Q34: Banks earn a profit on the difference
Q35: If the required reserve ratio is 20
Q36: Suppose the required reserve ratio is 0.1
Q37: Suppose the First National Bank acquires $500,000
Q38: Asymmetric information in financial markets exists when:
A)borrowers
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents