If Excess Reserves Are $10,000,demand Deposits Are $100,000,and the Required

question 68

Multiple Choice

If excess reserves are $10,000,demand deposits are $100,000,and the required reserve ratio is 10 percent,then total reserves are

• A)$0.
• B)$20,000.
• C)$10,000.
• D)$110,000.

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Definitions:

Optimal Solutions

Solutions that are the best possible under a given set of constraints or conditions.

Linear Optimization Models

These are mathematical models used to find the best outcome, such as maximum profit or lowest cost, under given constraints by using linear equations.

Balance Constraints

Restrictions in optimization problems that ensure the total input equals the total output, maintaining equilibrium.

Optimal Solution

The most efficient, cost-effective, or achievable outcome within a given set of constraints and conditions.