Suppose a Bank Has $200,000 in Deposits,a Required Reserve Ratio

question 82

Multiple Choice

Suppose a bank has $200,000 in deposits,a required reserve ratio of 15 percent,and total reserves of $100,000.Then it has excess reserves of

• A)$70,000.
• B)$30,000.
• C)Negative $100,000.
• D)$200,000.

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Definitions:

Cleavage

The process of cell division in a developing embryo where a single fertilized cell divides into multiple, smaller cells.

Ossification

The process by which bone is formed, renewed, and repaired in the body.

Folic Acid

A B-vitamin essential for the proper development of the human body, particularly critical in preventing neural tube defects in developing fetuses.

Folic Acid

A B-vitamin essential for cell growth and metabolism, important for the production of DNA and RNA, and crucial for preventing birth defects during pregnancy.