If a Bank That Desires to Hold No Excess Reserves

question 65

Multiple Choice

If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 15 percent receives a deposit of $600,it has a

• A)$600 increase in excess reserves and no increase in required reserves.
• B)$600 increase in required reserves and no increase in excess reserves.
• C)$510 increase in excess reserves and a $90 increase in required reserves.
• D)$90 increase in excess reserves and a $510 increase in required reserves.

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Definitions:

Motivation

The reasons or psychological factors that drive an individual to act, behave, or respond in a particular way.

Performance

The act of carrying out a task or function, often evaluated in terms of effectiveness, efficiency, or success.

Patterns Of Strengths And Weaknesses

Unique combinations of abilities and challenges that characterize an individual or system.

Intellectual Functioning

A measure of a person's ability to learn, reason, make decisions, and solve problems; often associated with IQ (Intelligence Quotient) scores.