Suppose a Bank Has $1,500,000 in Deposits and the Desired

question 598

Multiple Choice

Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the excess reserves are equal to

• A) zero.
• B) $20,000.
• C) $40,000.
• D) $120,000.

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Definitions:

Retained Secretions

Secretions that are not adequately cleared from the body, often referring to mucus or fluid in the lungs.

Thorax

The part of the body between the neck and the abdomen, encased by the ribs and containing the heart and lungs.

Congested

Refers to an area or organ being overly filled or crowded, often leading to a blockage or accumulation, such as in the nasal passages or roads.

Cystic Fibrosis

A genetic disorder affecting the lungs and digestive system by clogging them with thick, sticky mucus.