Bank a Has Checkable Deposits of $10 Million and Total

question 99

Multiple Choice

Bank A has checkable deposits of $10 million and total reserves of $1 million.The required reserve ratio is 9 percent.The bank has excess reserves of

• A) $910,000.
• B) $91,000.
• C) $100,000.
• D) $10,000.
• E) There is not enough information provided to answer this question.

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Definitions:

Independent Variable

In statistical and mathematical models, the variable that is manipulated or changed to observe its effect on a dependent variable.

Candy Store

A retail establishment specializing in the sale of candies, sweets, and similar confectionery products.

Slope

Slope is the measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Economic Growth

A rise in the output of goods and services within an economy across a specified timeframe, generally gauged by Gross Domestic Product (GDP).