If the required reserve ration is 10% and a bank has $100,000 in excess reserves, the maximum amount the bank can loan is a) 100% of the excess reserves b) 10% of the excess reserves c) This is a trick question since the banks must hold onto 100% of thier excess reserves d) 20% of the excess reserves e) 30% of the excess reserves

If the required reserve ration is 10% and a bank has $100,000 in excess reserves, the maximum amount the bank can loan is a) 100% of the excess reserves b) 10% of the excess reserves c) This is a trick question since the banks must hold onto 100% of thier excess reserves d) 20% of the excess reserves e) 30% of the excess reserves

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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