If a single bank has 25,000 in excess reserves and the desired ...

[geoffrey]

If a single bank has 25,000 in excess reserves and the desired reserve ratio is 20 percent, what is the maximum this bank can loan?
 
  A) 125,000 B) 20,000 C) 5,000 D) 30,000 E) 25,000

Question 2

Holding everything else constant, the U.S. real exchange with India will increase if the rupee depreciates.
 
  Indicate whether the statement is true or false

[Jayson]

Answer to Question 1

E

Answer to Question 2

TRUE

[geoffrey]

Great answer, keep it coming

[alvinum]

Thanks for the timely response, appreciate it