Refer to the Information Provided in Table 25

question 269

Multiple Choice

Refer to the information provided in Table 25.4 below to answer the question(s) that follow.
Table 25.4
-Refer to Table 25.4. If the required reserve ratio were changed to 5% and First Charter Bank continues to hold $1,200,000 in reserves, its excess reserves will be

• A) $400,000.
• B) $600,000.
• C) $800,000.
• D) $1,000,000.

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Definitions:

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Economic Losses

Financial deficits that occur when costs exceed revenues, or when the economic value generated is less than the resources used.

Zero Economic Profit

A situation where total revenue equals total cost, meaning the firm is covering all its opportunity costs but is not making excess profit.

Potential Competitors

Businesses not currently in the market but have the potential to enter and compete.