A bank has a 5 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement.Select one:a.None of them.b.lt has $1,000 in reserves and $3,000 in loans.c.lt has $20 in reserves and $4,980 in loans.d.It has $200 in reserves and $4,800 in loans.

The required reserve ratio is the statutory ratio set by the central bank of the country which is…

A bank has a 5 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement. elect one: a.None of them. b.lt has $1,000 in reserves and $3,000 in loans. c.lt has $20 in reserves and $4,980 in loans. d.it has $200 in reserves and $4,800 in loans.

A bank has a 5 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement. elect one: a.None of them. b.lt has $1,000 in reserves and $3,000 in loans. c.lt has $20 in reserves and $4,980 in loans. d.it has $200 in reserves and $4,800 in loans.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A bank has a 5 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement.
Select one:
a.None of them.
b.lt has $1,000 in reserves and $3,000 in loans.
c.lt has $20 in reserves and $4,980 in loans.
d.It has $200 in reserves and $4,800 in loans.

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