Econobank Has the Following Required Reserve Requirements If Econobank Has $68

question 17

Multiple Choice

Econobank has the following required reserve requirements $$\begin{array} { | l | c | } \hline \text { Trarnaction Accounts } & \text { Requirement } \\\hline \$ 0 \text { to } \$ 12.4 & 0 \% \\\hline \text { More than } \$ 12.4 \text { million to } \$ 79.5 \text { million } & 3 \% \\\hline \text { More than } \$ 79.5 \text { million } & 10 \% \\\hline\end{array}$$ If Econobank has $68.5 million in checking deposits what is the amount of required reserves?

• A)$1.683 million
• B)$2.055 million
• C)$6.85 million
• D)$68.million

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Definitions:

Flight Capacity

The maximum number of passengers or the amount of cargo that an airline can transport in a given period.

Collude

Cooperative behavior between firms in a market to set prices or output levels artificially high, typically in a way that is not in the best interests of consumers.

Maximize Profits

The process of increasing the difference between total revenue and total costs to reach the highest possible financial gain.

Identical Costs

Costs that are the same in value or magnitude for different firms or production processes.