Suppose the reserve requirement is 20 percent. If a bank has checkable deposits of $4 million and actual reserves of $1 million, it can safely lend out
A) $1 million.
B) $1.2 million.
C) $200,000.
D) $800,000.

Question

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The Answer of Suppose the reserve requirement is 20 percent. If a bank has checkable deposits of $4 million and actual reserves of $1 million, it can safely lend out
A) $1 million.
B) $1.2 million.
C) $200,000.
D) $800,000.

Suppose the Reserve Requirement Is 20 Percent