If the reserve ratio is 15 percent,and your bank acquires new deposits of $100,000,the maximum it can lend out of these new deposits is

Question

Quizplus · Accepted Answer

The reserve ratio is the percentage of deposits that a bank is required to hold as reserves and cannot lend out. In this case, the reserve ratio is 15%, so the bank must hold 15% of the new deposits of $100,000, which is $15,000. The maximum it can lend out is the amount remaining, which is $100,000 - $15,000 = $85,000. Therefore, the correct choice is C, $85,000.

If the Reserve Ratio Is 15 Percent,and Your Bank Acquires