If a Bank Has a Required Reserve Ratio of 25

question 18

Multiple Choice

If a bank has a required reserve ratio of 25 percent and there is $10,000 in deposits,what is the amount of required reserves?

• A) $40,000
• B) $10,000
• C) $0
• D) $2,500
• E) $5,000

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Definitions:

Vision

The ability to see or the faculty of sight; it can also refer to the capacity to envisage future developments and work towards them.

Information Processing

Involves the analysis and manipulation of incoming information by the brain, similar to how computers handle data.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment, giving rise to our experiences of sight, sound, taste, touch, and smell.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.