If the Desired Reserve Ratio Is 3 Percent and Deposits

question 82

Multiple Choice

If the desired reserve ratio is 3 percent and deposits totaled $5.75 billion, banks hold

• A)$172.5 million in reserves.
• B)$0.1725 million in reserves.
• C)$172.5 million in excess reserves.
• D)$0.1725 million in excess reserves.
• E)$192 million in reserves.

---

Definitions:

Greater Balance

The concept of achieving a more equitable or harmonious distribution in various aspects of life or systems.

Act Utilitarianism

A form of utilitarianism that assesses each separate act according to whether it maximizes pleasure or minimizes pain, focusing on the consequences of individual actions.

Utilitarian Ethic

A moral philosophy that evaluates the ethical worth of an action based on its consequences, specifically aiming to maximize overall happiness and minimize suffering.

General Welfare

A concept referring to the health, happiness, and fortunes of a person or group.