Refer to the information provided in Table 10.8 below to answer the questions that follow.
Table 10.8
-Refer to Table 10.8. Alamo Bank could make additional loans of $750,000, if the required reserve ratio were

Question

Refer to the information provided in Table 10.8 below to answer the questions that follow.
Table 10.8 
-Refer to Table 10.8. Alamo Bank could make additional loans of $750,000, if the required reserve ratio were

Quizplus · Accepted Answer

The required reserve ratio determines how much of a bank's deposits must be kept in reserve. A lower reserve ratio allows the bank to lend more. If Alamo Bank can make additional loans of $750,000, it implies a lower reserve ratio, such as 7.5%, would allow for this increase in lending capacity.

Refer to the Information Provided in Table 10