If a bank has $200,000 of checkable deposits, a required reserve ratio
If a bank has $200,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $80,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
A) $50,000.
B) $40,000.
C) $30,000.
D) $25,000.
ANSWER
A
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