Use the Following Example to Answer the Following Questions

question 8

Multiple Choice

Use the following example to answer the following questions:
Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.Assume that this institution has a required reserve ratio of 25 percent.
-As a result of this deposit,by how much will the bank's excess reserves increase?

• A) $0
• B) $18,750
• C) $25,000
• D) $31,250
• E) $100,000

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Definitions:

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or that affects a specific location and is not simply a direct result of physical injury.

Discipline

Training to ensure proper behavior, often through regulations and orders, or the controlled behavior resulting from such training.

Sovereign Kingdoms

Independent and self-governing kingdoms recognized as having complete authority and control over their territory without external interference.