Helen deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. As a result of her deposit, Bank A can make a maximum loan of ____ .  Checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to _____ .     Select one: a. $10,000 , $100,000.   b. $2,000 , $10,000. c. $8,000 , $50,000. d. $50,000 , $100,000. e. $9,000 , $40,000.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Helen deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. As a result of her deposit, Bank A can make a maximum loan of ____ . 

Checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to _____ .

 

 

Select one:
a.

$10,000 , $100,000.  

b.

$2,000 , $10,000.

c.

$8,000 , $50,000.

d.

$50,000 , $100,000.

e.

$9,000 , $40,000.

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