If a Bank Is Subject to a Reserve Requirement of 10

question 183

Multiple Choice

If a bank is subject to a reserve requirement of 10% and if its reserve ratio is 33%, then all of the following are true EXCEPT that it:

• A) can make additional loans.
• B) has excess reserves.
• C) must limit withdrawals.
• D) is considered highly liquid.

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Definitions:

Mitochondrion

An organelle found in large numbers in most cells, in which the biochemical processes of respiration and energy production occur.

Inner Compartment

This term could refer to any designated or enclosed area within a larger structure that is more internal or central, the specific context of use determines its exact meaning.

Glycolysis

A metabolic pathway that breaks down glucose into pyruvate, generating energy in the form of ATP.

ATP

(Adenosine Triphosphate) is a nucleotide that serves as the primary energy carrier in cells, providing energy for various biological processes.