Table 11-4.

-Refer to Table 11-4. If the bank faces a reserve requirement of 10 percent, then the bank
A) is in a position to make a new loan of $10,000.
B) has fewer reserves than are required.
C) has excess reserves of $12,500.
D) None of the above is correct.

Question

Table 11-4.
 
-Refer to Table 11-4. If the bank faces a reserve requirement of 10 percent, then the bank
A) is in a position to make a new loan of $10,000. 
B) has fewer reserves than are required. 
C) has excess reserves of $12,500. 
D) None of the above is correct.

Quizplus · Accepted Answer

The Answer of Table 11-4.
 
-Refer to Table 11-4. If the bank faces a reserve requirement of 10 percent, then the bank
A) is in a position to make a new loan of $10,000. 
B) has fewer reserves than are required. 
C) has excess reserves of $12,500. 
D) None of the above is correct.

Table 11-4. -Refer to Table 11-4. If the Bank Faces a Reserve