The ABC Bank Has $5,000 in Excess Reserves and the Desired

question 200

Multiple Choice

The ABC Bank has $5,000 in excess reserves and the desired reserve ratio is 30.The bank must have:

• A)$90,000 in outstanding loans and $35,000 in actual cash reserves.
• B)$90,000 in demand deposit liabilities and $32,000 in actual cash reserves.
• C)$20,000 in demand deposit liabilities and $10,000 in actual cash reserves.
• D)$90,000 in demand deposit liabilities and $35,000 in actual cash reserves.

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Definitions:

Communication Process Model

A theoretical structure that outlines the essential components and steps involved in the exchange of information between senders and receivers.

Feedback

Feedback refers to the information given to individuals or groups about their performance, with the intent of influencing and improving future performance.

Transmittable Medium

A medium capable of carrying and transferring information from one point to another.

Social Communication Model

A theoretical framework describing how information is transmitted between a sender and receiver through various forms of social media.