If a customer deposits $10,000 into a bank, how much money would the bank be capable of lending to an eligible loan applicant if this bank retains 20 percent of the deposit to cover withdrawals?

(A) About $9,000
(B) About $8,000
(C) About $2,000
(D) About $7,000

Ans: (C) About $2,000

Economics

You might also like to view...

Labor unions create barriers to entry in certain work settings

a. True b. False Indicate whether the statement is true or false

Economics

In the short run, a firm has fixed costs but never any variable costs

a. True b. False Indicate whether the statement is true or false

Economics