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Suppose a bank has a 10 percent reserve ratio, $2000 in deposits, and it loans out all it can, given the reserve ratio. Which of
Suppose a bank has a 10 percent reserve ratio, $2000 in deposits, and it loans out all it can, given the reserve ratio. Which of the following describes the bank's assets? (1mark)
a.It has $20 in reserves and $1800 in loans.
b.It has $20 in reserves and $1980 in loans.
c.It has $200 in reserves and $1800 in loans.
d.It has $200 in reserves and $2000 in loans.
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