Suppose That the Reserve Ratio Is 7 Percent and That

question 149

Multiple Choice

Suppose that the reserve ratio is 7 percent and that a bank has $2000 in deposits. What are its required reserves?

• A) $70
• B) $140
• C) $1400
• D) $1860

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Definitions:

Breach of Contract

The failure to fulfill the terms of an agreement, which can lead to legal action and the imposition of damages to remedy the breach.

Sale of Goods Act

A statute that governs the sale of goods, providing rights to buyers and obligations to sellers, including aspects like quality and title.

Title Pass

The transfer of ownership rights from one party to another, particularly in the sale of goods or property.

Contract

A voluntary exchange of promises creating obligations that, if defaulted on, can be enforced and remedied in the courts.