Suppose the Banking System Currently Has $400 Billion in Reserves

question 114

Multiple Choice

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?

• A)$5,000 billion
• B)$4,937.5 billion
• C)$5,062.5 billion
• D)$4,995 billion

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Definitions:

Facebook

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Good Plan

A strategy or outline of actions designed with clear objectives, achievable goals, and detailed steps for execution that leads to the desired outcome.

Environmental Uncertainty

The extent to which an organization lacks information about its external environment, making future planning challenging.

State Uncertainty

Refers to the unpredictability associated with the conditions or status of a system, environment, or entity in which outcomes are impossible to foresee accurately.