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

question 169

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 10 percent,then the bank has actual reserves of

• A)$14,000.
• B)$17,000.
• C)$22,000.
• D)$27,000.

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Definitions:

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The ability of an individual to influence others and control their own life, often deriving from personal traits, skills, or positions of informal authority rather than formal hierarchical structures.

Grand Strategy

A comprehensive, overarching plan or policy designed to achieve major or overall objectives, particularly in politics or business.

Louis XIV

King of France from 1643 to 1715, known as the Sun King, he ruled for the longest time in European history and significantly influenced the course of French absolutism.

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Refers to the dynasty that ruled over various European territories and empires, including Austria and Spain, from the medieval period through the 20th century, known for its significant influence in European politics.