If a Bank Is Subject to a Reserve Requirement of 15

question 54

Multiple Choice

If a bank is subject to a reserve requirement of 15%, then it is required to

• A) place 15% of its deposits in the vault.
• B) lend out 15% of its deposits.
• C) place 15% of its deposits in the account with its regional Federal Reserve bank.
• D) place 15% of its deposits in the account with its regional Federal Reserve bank or the vault.

---

Definitions:

Reflexive Constant

A principle in sociology that suggests individuals continually adjust their actions based on their social interactions and how they perceive others will respond.

Global Village

Global village refers to the concept of the world being interconnected and smaller due to the advances in communication and transportation technology, facilitating global awareness and cultural exchange.

Marshall McLuhan

A Canadian philosopher and professor who famously coined the expressions "the medium is the message" and "global village," emphasizing the impact of media and communication technologies on society.

Cultural Process

The dynamic mechanisms and patterns through which cultures are formed, maintained, and transformed over time, including traditions, practices, and social norms.