Question

Bank One has reserves of $100,000, government securities of $200,000, loans of $700,000, and checkable deposits of $800,000. If the desired reserve ratio is 10 percent, Bank One can make additional loans totaling
A) $0.00.
B) $10,000.
C) $20,000.
D) $80,000.
E) $100,000.

Answer

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