Suppose a bank already has excess reserves of $800 and the reserve ratio is 20%. If Andy deposits $1,000 of cash into his checking account and the bank lends $600 to Melanie, that bank can lend an additional: $200. $1,000. $800. $2,400. $400. A. B. CI D. E.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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12. Suppose a bank already has excess reserves of $800 and
the reserve ratio is 20%. If Andy deposits $1,000 of cash
into his checking account and the bank lends $600 to
Melanie, that bank can lend an additional:
$200.
$1,000.
$800.
$2,400.
$400.
A.
B.
CI
D.
E.
Transcribed Image Text:12. Suppose a bank already has excess reserves of $800 and the reserve ratio is 20%. If Andy deposits $1,000 of cash into his checking account and the bank lends $600 to Melanie, that bank can lend an additional: $200. $1,000. $800. $2,400. $400. A. B. CI D. E.
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