A Bank Has $200 of Reserves and $4,000 of Deposits

question 27

Multiple Choice

A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is

• A)$200.
• B)25 percent.
• C)20 percent.
• D)10 percent.
• E)5 percent.

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Definitions:

Dimensional Approach

A method of understanding mental health conditions along a continuum rather than as distinct categories, suggesting a range of severity for symptoms.

Dichotomous Classification

The division or classification of items into two distinct, mutually exclusive categories.

Key Personality Traits

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Borderline Personality Disorder

A syndrome of emotional instability affecting mood regulation, behavior, and the nature of interpersonal relationships.