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First Safety,a Chartered Bank,has $6 000 000 of Outstanding Demand

Question 80

Multiple Choice

First Safety,a chartered bank,has $6 000 000 of outstanding demand deposits and actual reserves of $1 700 000.If the desired reserve ratio is 25 percent,what is the maximum loan the bank can extend?


A) $100 000
B) $425 000
C) $200 000
D) $1 500 000

Correct Answer:

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