Suppose a bank faces a 10% required reserve ratio and it has $100 in required reserves. If it is fully loaned out, what is the amount of deposits in this bank?
A) $900
B) $10
C) $1,000
D) $10,000
Correct Answer:
Verified
Q443: When a person deposits money in a
Q444: Traveler's checks and checkable deposits are:
A)part of
Q445: Currency in circulation plus bank reserves:
A)forms the
Q446: If banks decide to hold some of
Q447: Paper money in the United States, which
Q449: When banks extend loans:
A)the money supply decreases.
B)the
Q450: Between 1929 and 1933, bank deposits fell:
A)as
Q451: Fiat money is:
A)the same as commodity money.
B)money
Q452: Deposit insurance:
A)is essentially the same as a
Q453: A bank's capital is the:
A)sum of its
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents