Question 1
Refer to the information provided in Table 25.8 below to answer the question(s) that follow.


Refer to Table 25.8. Alamo Bank could make additional loans of $750,000, if the required reserve ratio were
◦ 12.5%.
◦ 10%.
◦ 7.5%.
◦ 2.5%.
Question 2
Refer to the information provided in Table 25.8 below to answer the question(s) that follow.


Refer to Table 25.8. If the required reserve ratio were changed to 10% and Alamo Bank continues to hold $1,200,000 in reserves, its excess reserves will be
◦ $150,000.
◦ $300,000.
◦ $600,000.
◦ $900,000.