Question 15 The highest and best use of real estate is its
a)
most profitable use, without other considerations.
b) most environmentally sound use.
c)
present use unless its improvements have reached the end of their useful life.
d) most profitable legally and physically permitted use.

Option D.

Explanation:

Banks usually operate in a fractional reserve banking system which means that they only have to keep a fraction of all their deposits and can loan out the rest, so they can create money by lending out money. For example if $10 is deposited into a bank and the required reserve ratio is 10% they can loan out $9 and have to keep only $1 in reserve. When they loan out $9 they are creating new money as someone who didn't have any money now has $9. And this keeps on going on as the $9 might also end up in the bank and 90% of that will be loaned out.

Explanation:

Banks usually operate in a fractional reserve banking system which means that they only have to keep a fraction of all their deposits and can loan out the rest, so they can create money by lending out money. For example if $10 is deposited into a bank and the required reserve ratio is 10% they can loan out $9 and have to keep only $1 in reserve. When they loan out $9 they are creating new money as someone who didn't have any money now has $9. And this keeps on going on as the $9 might also end up in the bank and 90% of that will be loaned out.