If the Desired Reserve Ratio Is 3 Percent and Deposits

question 8

Multiple Choice

If the desired reserve ratio is 3 percent and deposits are $5.75 billion, banks hold

• A)$0.1725 million in excess reserves.
• B)$192 million in reserves.
• C)$0.1725 million in reserves.
• D)$172.5 million in excess reserves.
• E)$172.5 million in reserves.

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Definitions:

Swan-Neck Deformities

A finger deformity characterized by hyperextension of the proximal interphalangeal joint and flexion of the distal interphalangeal joint, often seen in rheumatoid arthritis.

Bouchard Nodules

Hard, bony outgrowths or nodules located on the proximal interphalangeal joints, often associated with osteoarthritis.

Heberden Nodes

Hard or bony swellings that can form on the distal interphalangeal joints, commonly associated with osteoarthritis.

Dupuytren Contractures

A condition where the fingers bend towards the palm and cannot be fully extended, due to thickening and shortening of the palmar fascia.