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If a bank has $40,000 in demand deposits, and the reserve requirement is 50 percent, then this bank can: A. loan out all of the
If a bank has $40,000 in demand deposits, and the reserve requirement is 50 percent, then this bank can:
A. loan out all of the money that has been deposited.
B. loan out $40,000.
C. loan out $10,000.
D. not loan out any of this money.
E. loan out $1,000.
F. None of the listed choices is correct.
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