Suppose the ABC Bank Has Excess Reserves of $4,000 and Outstanding

question 48

Multiple Choice

Suppose the ABC bank has excess reserves of $4,000 and outstanding demand deposits of $80,000.If the desired reserve ratio is 25 percent, what is the size of the bank's actual cash reserves?

• A)$16,000
• B)$84,000
• C)$24,000
• D)$20,000

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Definitions:

Organizational Behaviour

The study of how individuals and groups interact within and toward an organization, and how this impacts the organization's functioning and performance.

Personality Characteristics

The traits and features that define an individual’s patterns of thought, feelings, and behavior.

Organizational Behaviour

The study of both group and individual performance and activity within an organization, focusing on understanding, predicting, and influencing human behavior.

Personality Tests

Assessments used to evaluate individuals' character traits, dispositions, and tendencies to predict behavior.