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Author Question: If a bank receiving a new deposit of 200,000 would be able, as a result, to increase their lending ... (Read 99 times)

cagreen833

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on: Jun 30, 2018
If a bank receiving a new deposit of 200,000 would be able, as a result, to increase their lending by at most 120,000, then the required reserve ratio equals:
 a. 4.
 b. 25.
  c. 40.
  d. 50.

Question 2

According to Regulation Q, the maximum interest rate that the U.S. banks could pay on deposits was limited by the Federal Reserve. This reduced volatility in the financial markets and largely benefited the U.S. banks.
 a. True
  b. False
  Indicate whether the statement is true or false


Zebsrer

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

False


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