Suppose the Required Reserve Ratio Is 10

question 73

Multiple Choice

Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's required reserves?

• A) $25,000
• B) $55,000
• C) $80,000
• D) $135,000

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Definitions:

AIDA Plan

A marketing model that outlines the process for achieving successful advertising or sales strategies, standing for Attention, Interest, Desire, and Action.

Benefit Them

To have a positive effect on someone or provide them with an advantage.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Generalization

The process or method of formulating general concepts by abstracting common properties of specific instances.