A bank has a reserve ratio of 10 percent, and it has received $5,000 of deposits. What is the bank's assets? Group of answer choices It has $500 in reserves and $4,500 in loans. It has $50 in reserves and $4,950 in loans. It has $50 in reserves and $5,000 in loans. It has $10 in reserves and $4,990 in loans.
A bank has a reserve ratio of 10 percent, and it has received $5,000 of deposits. What is the bank's assets? Group of answer choices It has $500 in reserves and $4,500 in loans. It has $50 in reserves and $4,950 in loans. It has $50 in reserves and $5,000 in loans. It has $10 in reserves and $4,990 in loans.
Chapter19: Money Creation
Section: Chapter Questions
Problem 19SQ
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Question
A bank has a reserve ratio of 10 percent, and it has received $5,000 of deposits. What is the bank's assets?
Group of answer choices
It has $500 in reserves and $4,500 in loans.
It has $50 in reserves and $4,950 in loans.
It has $50 in reserves and $5,000 in loans.
It has $10 in reserves and $4,990 in loans.
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