As an in and Out Burger Restaurant Increases the Number

question 81

Multiple Choice

As an In and Out Burger restaurant increases the number of employees for a specific restaurant,

• A)Total production of hamburgers will fall.
• B)Costs of production will fall.
• C)Efficiency will suffer as the restaurant becomes too crowded with employees.

---

Definitions:

Required Reserves

The minimum amount of funds a bank must hold in reserve against deposit liabilities, as mandated by regulatory authorities.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand and not loan out, used by central banks to control the amount of money in circulation.

Legal Reserves

Reserves that depository institutions are allowed by law to claim as reserves; vault cash and deposits held at Federal Reserve district banks.

Excess Reserves

Excess Reserves are the reserves that banks hold over and above the legal or required minimum they need to keep against deposits.