If a Bank Has Excess Reserves of $20,000 and Demand

question 137

Multiple Choice

If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has total reserves of

• A)$16,000.
• B)$20,000.
• C)$26,000.
• D)$36,000.

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Definitions:

Demographic Variables

Characteristics of populations, such as age, race, gender, income, and education, used in research and marketing to segment and analyze populations.

Age

A demographic factor referring to the length of time that an individual or entity has been alive or in existence, often considered in marketing, social studies, and human resource management.

Income

The monetary payment received for goods or services, or from other sources, as rents or investments.

Communication

The process of exchanging information or ideas through various means, including speech, writing, visual images, or digital platforms.