Suppose a Bank Has $1 Million in Deposits, a Reserve

question 72

Multiple Choice

Suppose a bank has $1 million in deposits, a reserve requirement of 10%, and bank reserves of $300,000. The bank has excess reserves of

• A) $50,000.
• B) $100,000.
• C) $200,000.
• D) $300,000.

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Definitions:

Grade Point Averages

A numerical representation of a student's academic performance, averaged over their courses.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Placebos

Inert substances or treatments used as controls in experiments, testing the effectiveness of medical interventions without any active ingredients.

Inactive Substances

Substances that have no intended therapeutic effect; often used as placebos in clinical trials to assess the efficacy of active treatments.