Suppose a Chartered Bank Has Demand Deposits of $100,000 and the Desired

question 144

Multiple Choice

Suppose a chartered bank has demand deposits of $100,000 and the desired reserve ratio is 10 percent.If the bank's desired and excess reserves are equal, then its actual cash reserves:

• A)are $30,000.
• B)are $10,000.
• C)are $20,000.
• D)cannot be determined from the given information.

---

Definitions:

Translocate

The process of moving substances within an organism, especially the movement of nutrients and fluids in plants.

Phloem

The plant tissue responsible for carrying sugars and various metabolic substances from the leaves downwards.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy, usually from the sun, into chemical energy stored in glucose, with oxygen as a by-product.

Sucrose

A disaccharide composed of glucose and fructose, commonly known as table sugar, used as a sweetener in foods and beverages.