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:

Federal Legislation

Laws enacted by the national government of a country that frame the legal environment in which organizations operate.

Electronic Documents Act

Legislation governing the creation, validity, and legal recognition of electronic documents and signatures, facilitating digital transactions and contracts.

Dismissal

The act of formally terminating an employee's contract with the organization, usually due to performance issues or workplace infractions.

Mediation

A conflict resolution method where a neutral third party facilitates dialogue between disputing parties to help them reach an agreement.