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

question 89

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 15 percent,then the bank has actual reserves of

• A)$17,000.
• B)$22,000.
• C)$27,000.
• D)$29,000.

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Definitions:

Cognitive-Behavioural Therapy

A therapy approach focusing on changing negative thought patterns and behaviors to improve emotional regulation and personal coping strategies.

Psychotherapy

A general term for treating mental health problems by talking with a psychiatrist, psychologist or other mental health provider.

Effectiveness

The degree to which something achieves its intended outcome or results under real-world conditions.

Extrapyramidal Effects

Side effects of certain medications that act on the brain's motor system, leading to involuntary movements, tremors, and other movement disorders.