Answer to Question #90524 in Macroeconomics for Sung Eun Seok

Question #90524

16. A single commercial bank must meet a 25 percent reserve requirement. If it initially has no
excess reserves and then $2000 in cash is deposited in the bank, it can increase its loans by a
maximum of:
A. $2000
B. $1250
C. $1500
D. $1000

Expert's answer

16. C $1500

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