Question: 43
(Choose 1 answer)
A bank has a 5 percent reserve requirement, $5,000 in deposits, and has loaned out all it can given the reserve
requirement.
A. It has $25 in reserves and $4,975 in loans.
B. It has $250 in reserves and $4,750 in loans.
C. It has $1,000 in reserves and $4,000 in loans.
D. There is none correct answer.
