A bank has a reserve requirement of 50% and no excess reserves. If a new customer...
A bank has a reserve requirement of 50% and no excess reserves. If a new customer deposits $100 million, the bank can make a maximum new loan of:
$10 million
$50 million
$90 million
$100 million
Homework Answers
Reserve requirement = 50%
Reserve = 100 m * 0.5 = 50 m
Amount that can be used to give loan = 50m
Second option is correct answer
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A bank has a reserve requirement of 50% and no excess reserves.
If a new customer...
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1a)
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