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MMLU-Pro / 7069 / Suppose a commercial bank has 100,000indepositsandhasmadeloansof…

Problem

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question

Suppose a commercial bank has 100,000indepositsandhasmadeloansof 100,000 in deposits and has made loans of 65,000. If the required reserve ratio is 20%, (a) how much additional money can the bank lend, and (b) how much can the banking system as a whole add to the money supply as a result of the loan?
Plain-text mathematical notation (without MathML)
Suppose a commercial bank has 100,000indepositsandhasmadeloansof 65,000. If the required reserve ratio is 20%, (a) how much additional money can the bank lend, and (b) how much can the banking system as a whole add to the money supply as a result of the loan?
Original LaTeX notation
Suppose a commercial bank has $ 100,000 in deposits and has made loans of $ 65,000. If the required reserve ratio is 20%, (a) how much additional money can the bank lend, and (b) how much can the banking system as a whole add to the money supply as a result of the loan?

category

economics

options

  1. $10,000 and $50,000
  2. $30,000 and $150,000
  3. $15,000 and $75,000
  4. $20,000 and $100,000

src

stemez-Economics

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