Suppose Bank ABC Has a Target Reserve Ratio of 2

question 1

Multiple Choice

Suppose Bank ABC has a target reserve ratio of 2%.If Bank ABC receives a new deposit of $50 million it will immediately find itself with

• A)no excess cash reserves.
• B)excess cash reserves of $1 million.
• C)excess cash reserves of $10 million.
• D)excess cash reserves of $49 million.
• E)excess cash reserves of $49.5 million.

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Definitions:

Gyeongju

A city in South Korea, known for its extensive historical sites and ruins from the Silla dynasty, including royal tombs and temple ruins.

Seokguram

A historical Buddhist cave temple located in South Korea, renowned for its monumental statue of Gautama Buddha and intricate stone carvings.

Siberians

Indigenous peoples and ethnic groups inhabiting Siberia, a vast region in Russia, known for their diverse cultures, languages, and adaptation to extreme environments.

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People associated with Gandhara, an ancient region in the northwest of the Indian subcontinent, known for its distinctive style of Buddhist art.