The Manager of the Bank Where You Work Tells You

question 31

Multiple Choice

The manager of the bank where you work tells you that your bank has $6 million in excess reserves.She also tells you that the bank has $400 million in deposits and $362 million dollars in loans.Given this information you find that the reserve requirement must be

• A)44/400.
• B)6/362.
• C)38/400.
• D)32/400.

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Definitions:

Value

The financial, tangible, or estimated value of a property, product, or service.

Intrinsic Value

The actual, inherent worth of an asset, independent of its market value, often calculated using fundamental analysis.

Call

An option contract that gives the holder the right, but not the obligation, to buy a security at a specified price within a specified time period.

Value

The worth of an asset or service, determined by factors such as market demand, utility, and costs of production.