Assume that U. S. National Bank has no excess reserves and that the reserve ratio is 20 percent. If U. S. National borrows $5 million from a Federal Reserve Bank through a repo transaction, it can expand its loans by a maximum of
A) $1 million.
B) $0.
C) $25 million.
D) $5 million.
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Assume that U. S. National Bank has no excess reserves and that the reserve ratio is 20 percent. If U. S. National borrows $5 million from ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » Assume that U. S. National Bank has no excess reserves and that the reserve ratio is 20 percent. If U. S. National borrows $5 million from a Federal Reserve Bank through a repo transaction, it can expand its loans by a maximum of A) $1 million.