1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gelneren [198K]
4 years ago
8

Suppose that a bank with no excess reserves receives a deposit into a checking account of $10,000 in currency. If the required r

eserve ratio is 0.20, what is the maximum amount that the bank can lend out?A) $2,000
B) $8,000
C) $10,000
D) $50,000
Social Studies
1 answer:
gladu [14]4 years ago
5 0

Answer:

Maximum money that bank can lend is  $50,000

Explanation:

Given data:

Amount deposit is $10,000

reserve ratio is 0.20

Maximum money that bank can lend is calculated as

maximum money = (deposit - reserve)× money multiplier

money multiplier = \frac{1}{reserve\ ratio}

money multiplier= \frac{1}{0.20} = 5

and reserve is zero hence

maximum money = (10,000 - 0)× 5

maximum money = $50,000

You might be interested in
Help with numbers 1,2 and 3<br><br><br>- thank you ​
zzz [600]

Answer:

1 is this: The four middle lines of latitude are the Tropic of Cancer, the Tropic of Capricorn, the International Date Line and the Prime Meridian.

2 is: Climate models project robust differences in regional climate between present-day and global warming up to 1.5°C, and between 1.5°C and 2°C (high confidence), depending on the variable and region in question (high confidence).

3 is: The term civilization refers to complex societies, but the specific definition is contested.

The advent of civilization depended on the ability of some agricultural settlements to consistently produce surplus food, which allowed some people to specialize in non-agricultural work, which in turn allowed for increased production, trade, population, and social stratification.

The first civilizations appeared in locations where the geography was favorable to intensive agriculture.

Governments and states emerged as rulers gained control over larger areas and more resources, often using writing and religion to maintain social hierarchies and consolidate power over larger areas and populations.

Writing allowed for the codification of laws, better methods of record-keeping, and the birth of literature, which fostered the spread of shared cultural practices among larger populations.

8 0
3 years ago
Read 2 more answers
Of the four approaches employed in formal organization structure, which do you think is the best? Cite situations which will cal
Elis [28]

Answer:

well maybe

Explanation:

So and so might be

4 0
3 years ago
When you go on a vacation and get a message at the spa, it's an example of
olya-2409 [2.1K]

Answer:

Services

Explanation:

3 0
3 years ago
Need help ASAP please and thank you
jolli1 [7]

Answer:

Answer should be J

Explanation:

Hope that helps

4 0
3 years ago
A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules of behavior in their com
Juli2301 [7.4K]

The law is the correct answer.

In a democracy, the power is held by the people. These people are the ones responsible for electing the person who is going to represent them. Also, the majority of citizens allow certain authorities to create and enforce rules of behavior, also known as laws, within the territory.

6 0
4 years ago
Other questions:
  • Why do you think India is a democracy ​
    8·1 answer
  • A major goal of the Progressive movement was to A) establish a flat rate income tax. B) increase democracy in US government. C)
    12·2 answers
  • Why did war and conflict happen in many different<br> parts of Africa after independence?
    14·1 answer
  • Drag and drop the correct effects of the Reformation and Counter-Reformation on Europe. Effects may be used once, more than once
    8·1 answer
  • All of the following are dimensions of disability under the IDEA guidelines, except _ blank _. Select one: a. sensory difference
    7·1 answer
  • What was the basis and conclusion of Minard’s 1952 study?
    10·2 answers
  • When alicia wanted her relationship with todd to end, but todd wanted the relationship continue, the relationship ended due to a
    9·1 answer
  • What war was described in the book The Red Badge of Courage
    5·2 answers
  • Pickens is a city a in the Metro Atlanta Area<br> T.True<br> F.False
    9·2 answers
  • Which of the following human rights abuses would occur in an unlimited government?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!