If a Bank Has Excess Reserves of $7,000 and Demand

question 89

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 15 percent,then the bank has actual reserves of

• A)$17,000.
• B)$22,000.
• C)$27,000.
• D)$29,000.

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Definitions:

Dementia

Deterioration in cognitive and behavioral functioning due to physiological causes.

Physiologically Caused

Originating from or prompted by the functioning of an organism’s body.

Memory Loss

A condition where a person loses the ability to remember information or events that they would normally be able to recall.

Periodontitis

A severe gum infection that damages the soft tissue and destroys the bone that supports teeth, potentially leading to tooth loss.