A Bank Has $100,000 in Checkable Deposits and $30,000 in Reserves

question 3

Multiple Choice

A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 10%, what is the amount of excess reserves?

• A) $0
• B) $10,000
• C) $20,000
• D) $30,000

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Definitions:

Level 1 Cache

A type of fast and small memory located within a computer processor to store instructions and data for quick access.

Level 2 Cache

Also known as L2 cache, it is a secondary tier of cache memory that helps improve processing by storing frequently accessed data and instructions.

Cache Memory

A type of fast computer memory that provides high-speed data access to a processor and stores frequently used computer programs, applications, and data.

ROM

Read-Only Memory, a type of non-volatile storage that is typically used to store firmware or application software in electronic devices.