If You Deposit a $50 Bill in a Chartered Bank

question 171

Multiple Choice

If you deposit a $50 bill in a chartered bank that has a 10 percent desired reserve ratio, the bank will:

• A)have $45 of additional excess reserves.
• B)be capable of lending an additional $500.
• C)be capable of lending an additional $50.
• D)have $50 of desired reserves.

---

Definitions:

Dispute

A disagreement, conflict, or argument between parties over a particular issue, which may necessitate resolution through negotiation, mediation, or legal means.

Colleagues

Refers to individuals working together in the same organization or profession, often implying a peer relationship.

Arbitration

A method of dispute resolution where an impartial third party makes a decision to settle the dispute outside of court.

Supportive Relationships

Relationships characterized by mutual support, care, and assistance among individuals, fostering emotional and practical well-being.