A bank has $8,000 in checkable deposits. If the reserve requirement is 0.2, _____.
A) the bank can lend $8,000
B) the bank cannot lend more than $6,400
C) the bank cannot lend more than $5,400
D) the bank can lend $1,600
E) the bank can lend $7,000
Correct Answer:
Verified
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