A Bank Has $50,000 in Excess Reserves and the Required

question 40

Multiple Choice

A bank has $50,000 in excess reserves and the required reserve ratio is 10 percent.This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves.

• A) $500,000; $90,000
• B) $100,000; $20,000
• C) $50,000; $25,000
• D) $250,000; $75,000

---

Definitions:

Direct-order Messages

Communications that directly state the purpose or request at the beginning, often used in business to ensure clarity and efficiency.

General Plan

A General Plan outlines the goals, policies, and guidelines that a community or organization intends to follow over a certain period.

Reader's Reaction

The immediate response or feeling of a reader after engaging with a piece of text or content.

Business Message

Formal communication conveyed by businesses to convey information, instructions, or requests to stakeholders.