If Jose deposits $2,000 in his bank and the desired reserve ratio is 10 percent, what is the amount of new loans that the bank can make?
A)$2,000
B)$2,200
C)$200
D)$1,800
E)$1,900

Name: If Jose deposits $2,000 in his bank and the desired reserve ratio is 10 percent, what is the amount of new loans that the bank can make? A)$2,000 B)$2,200 C)$200 D)$1,800 E)$1,900
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

The bank must keep 10% of $2,000 as reserves, which is $200. Therefore, the bank can loan out the remaining $1,800.

If Jose Deposits $2,000 in His Bank and the Desired