(Table) SCENARIO: Assume That the Empathy State Bank Begins with the Balance

question 156

Multiple Choice

(Table) SCENARIO: Assume that the Empathy State Bank begins with the balance sheet below and is fully loaned up. If this bank is subject to a reserve requirement of 5%, what is the amount of its excess reserves?

• A) $2,500
• B) $5,000
• C) $10,000
• D) Negative. This bank does not have excess reserves; it needs $2,500 to meet its reserve requirement.

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Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs, playing a crucial role in breathing.

Glottis

The part of the larynx consisting of the vocal cords and the slit-like opening between them.

Ventricular Fold

The ventricular fold, also known as the false vocal cord, is a structure in the larynx that plays a role in the protection of the vocal cords and in respiratory functions.

Epiglottis

A flap of cartilage at the root of the tongue, which is depressed during swallowing to cover the opening of the windpipe.