Consider a New Deposit of $10 000 to the Canadian

question 4

Multiple Choice

Consider a new deposit of $10 000 to the Canadian banking system. The commercial bank that initially receives this deposit will find itself with

• A)no excess reserves if there is no reserve requirement.
• B)$1 000 of excess cash reserves if its target reserve ratio is 10 percent.
• C)$2 000 of excess cash reserves if its target reserve ratio is 2 percent.
• D)$9 000 of excess cash reserves if its target reserve ratio is 10 percent.
• E)$98 000 of excess cash reserves if its target reserve ratio is 2 percent.

---

Definitions:

Nervous System

The part of an organism that gathers, processes, and responds to sensory information, consisting of the brain, spinal cord, and peripheral nerves.

MRI

Magnetic Resonance Imaging, a medical imaging technique used to form pictures of the anatomy and the physiological processes of the body.

Inner Space

A psychological or spiritual concept referring to the exploration of one's own mind or inner self.

Amygdala

A section of the brain that is responsible for detecting fear and preparing for emergency events.