If the Desired Reserve Ratio Is 3 Percent and Deposits

question 183

Multiple Choice

If the desired reserve ratio is 3 percent and deposits totaled $575 billion, banks would hold

• A) $1,725 billion in currency.
• B) $17.25 billion in excess reserves.
• C) $534.75 in reserves.
• D) $17.25 billion in reserves.

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Definitions:

Humanitarian Mission

An operation conducted to provide aid and relief to people in need, especially in situations of crisis, natural disasters, or conflicts.

Troops

Units of soldiers, typically used to refer collectively to military personnel.

Somalia

A country located in the Horn of Africa, known for its long coastline, history of clan-based society, and recent struggles with instability and piracy.

Long-lasting Conflict

A prolonged struggle or dispute that persists over an extended period of time, often involving armed combat.