If a bank had demand deposits of $50 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?
A) $50 million
B) $37.5 million
C) $25 million
D) $12.5 million
Correct Answer:
Verified
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A bank's assets consist of $500,000
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A bank's assets consist of $1,000,000
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