If All the Commercial Banks in the Banking System Collectively

question 16

Multiple Choice

If all the commercial banks in the banking system collectively have $300 million in cash reserves and are satisfying their target reserve ratio of 20 percent, what is the amount of deposits they have?

• A)$1500 million
• B)$0
• C)$600 million
• D)$2000 million
• E)$60 million

---

Definitions:

Habeas Corpus

A legal principle that protects individuals from being detained unlawfully, allowing them to seek relief from illegal imprisonment.

Detention

The act of holding back or confining individuals, often in relation to law enforcement or immigration procedures, for a period of time.

Legal Cause

A legally sufficient reason to take certain legal action, such as filing a lawsuit.

Federal District Court

A level of the federal judiciary that has jurisdiction over civil and criminal cases within its area, and is a trial court of the federal court system.