Bank a Has Checkable Deposits of $10 Million and Total

question 123

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 required reserves of

• A) $910,000.
• B) $90,000.
• C) $900,000.
• D) $1,000,000.
• E) There is not enough information provided to answer this question.

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Definitions:

Abnormal Subsurface

Relates to unexpected or unusual conditions below the ground surface, often encountered in construction or mining, that can impact the feasibility or the safety of projects.

Rock Formations

Naturally occurring arrangement of rocks in the environment, often characterized by unique shapes and compositions.

Excavation

The process of removing soil, rock, or other materials from a site to form a hole, cavity, or to uncover something buried.

Preexisting Legal Obligation

An obligation that existed before the current situation or agreement, which may affect the validity of a new contract.