If the Desired Reserve Ratio Is 10 Percent, How Much

question 88

Multiple Choice

If the desired reserve ratio is 10 percent, how much excess reserves does a bank acquire when a business deposits a $500 cheque drawn on another bank?

• A)$450
• B)$550
• C)$5000
• D)$500

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Definitions:

Endoplasmic Reticulum

An organelle in eukaryotic cells that plays a key role in protein and lipid synthesis and transport.

Nuclear Envelope

Double membrane structure surrounding and enclosing the nucleus.

Chromosomes

Structures made of DNA and protein that contain the genes and are found in the nucleus of eukaryotic cells.

Nuclear Pores

Porelike openings in the nuclear envelope where the inner and outer membranes fuse.