If Bank A has $3.8 million in total deposits, $860,000 in total reserves, and faces a 12 percent reserve requirement, the amount of money that Bank A could initially create by loaning out their excess reserves is: O $100,000. O $385,000 O$404,000 $756,800 O $3,366,667

If Bank A has $3.8 million in total deposits, $860,000 in total reserves, and faces a 12 percent reserve requirement, the amount of money that Bank A could initially create by loaning out their excess reserves is: O $100,000. O $385,000 O$404,000 $756,800 O $3,366,667

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

If Bank A has $3.8 million in total deposits, $860,000 in total reserves, and faces a 12 percent
reserve requirement, the amount of money that Bank A could initially create by loaning out their
excess reserves is:
O $100,000.
O $385,000
$404,000
O $756,800
O $3,366,667

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