If a bank receiving a new deposit of 200,000 would be able, as a ...

[cagreen833]

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]

Answer to Question 1

c

Answer to Question 2

False