A Bank Has $100,000 in Checkable Deposits and $30,000 in Reserves

question 3

Multiple Choice

A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 10%, what is the amount of excess reserves?

• A) $0
• B) $10,000
• C) $20,000
• D) $30,000

---

Definitions:

Stupa

A dome-shaped structure erected as a Buddhist shrine in South Asia, serving as a marker for sacred relics or commemorating significant events in Buddhism.

Punjab Hills

A region in north India known for its distinct art styles, particularly in miniatures and paintings, which often depict themes from Hindu mythology and nature.

Rajput Painting

A style of Indian painting, evolved and flourished in the royal courts of Rajputana, primarily depicting epic themes, court scenes, and landscapes.

Krishna

A major deity in Hinduism, worshipped as the eighth avatar of the god Vishnu and celebrated for his teachings in the Bhagavad Gita.