If a bank has total reserves of $200,000 and $1 million in deposits, how much money can it lend if the required reserve ratio is  (a) 4 percent? (b) 6 percent?

Economics Today and Tomorrow, Student Edition
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Chapter6: Saving And Investing
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If a bank has total reserves of $200,000 and $1 million in deposits, how much money can it lend if the required reserve ratio is 

(a) 4 percent?

(b) 6 percent?   

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