Question

question 84 a bank has a 5 percent reserve requirement, $5,000 in deposits, and has loaned out all it can given the reserve requirement. its loans total:

Explanation:

Step1: Calculate required reserves

The required reserve is 5% of deposits, so:
$\text{Required Reserves} = 0.05 \times \$5,000 = \$250$

Step2: Calculate total loans

Loans equal total deposits minus required reserves:
$\text{Total Loans} = \$5,000 - \$250 = \$4,750$

Answer:

$\$4,750$