Table 9-4 Acme Bank: Partial Balance Sheet

question 199

Multiple Choice

Table 9-4
Acme Bank: Partial Balance Sheet
(All figures in $ million)

-Refer to Table 9-4. Assume Acme Bank initially has no excess reserves. If Guevara withdraws $6,000 from her checking account at Acme Bank, which of the following will occur?

• A) Acme's excess reserves are reduced by $6,000.
• B) Acme will have excess reserves of $2,000.
• C) Acme will have a required reserve deficiency of $3,000.
• D) Acme will have a required reserve deficiency of $5, 400.

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Definitions:

Urea

Main nitrogenous waste of terrestrial amphibians and most mammals.

Creatinine

A waste product produced by muscles from the breakdown of a compound called creatine, commonly measured in blood or urine tests as an indicator of kidney function.

Tubular Reabsorption

Movement of primarily nutrient molecules and water from the contents of the nephron into blood at the proximal convoluted tubule.

Peritubular Capillary Network

A network of tiny blood vessels that surround the tubules in the kidneys, involved in reabsorption and secretion.