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LJW Bank Has $200 Million in Deposits, $30 Million in Actual

Question 45

Multiple Choice

LJW Bank has $200 million in deposits, $30 million in actual reserves and a 15 percent reserve requirement. LJW Bank can make:


A) no new loans.
B) $4.5 million in new loans.
C) $25.5 million in new loans.
D) $30.0 million in new loans.

Correct Answer:

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