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18) A single commercial bank must meet a 25% reserve requirement. If it initially has no excess reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of A) $2,000. B) $1,500. C) S1,250. D) S1,750.

18) A single commercial bank must meet a 25% reserve requirement. If it initially has no excess reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of A) $2,000. B) $1,500. C) S1,250. D) S1,750.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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18) A single commercial bank must meet a 25% reserve requirement. If it initially has reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of no excess A) $2,000. B) $1,500. C) S1,250. D) S1,750.
Transcribed Image Text:18) A single commercial bank must meet a 25% reserve requirement. If it initially has reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of no excess A) $2,000. B) $1,500. C) S1,250. D) S1,750.
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