Use the Following to Answer Questions

question 59

Multiple Choice

Use the following to answer questions .
Exhibit: Reserves, Loans, and Money

-(Exhibit: Reserves, Loans, and Money) The required reserve ratio is 10%. What is the amount of Bolton Bank's required reserves?

• A) $30 million
• B) $70 million
• C) $100 million
• D) $300 million

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Definitions:

Apparent Authority

A situation where a third party reasonably believes that an agent has the authority to act on behalf of the principal, even if such authority has not been formally granted.

Terminate

To bring an end to something, such as a contract, employment, or operation, either by mutual agreement, fulfillment of terms, or through unilateral action.

Notify

To formally or officially inform someone of something.

Emergency Powers

Special, temporary powers granted to governments to handle crises or emergencies, allowing deviations from normal procedures or laws.