If Excess Reserves Are $10 Million,(total)reserves Are $14 Million,and the Required

question 16

Multiple Choice

If excess reserves are $10 million,(total) reserves are $14 million,and the required reserve ratio is 10%,then required reserves equal ________________ and checkable deposits equal ____________________.

• A) $4 million; $40 million
• B) $40 million; $4 million
• C) $24 million; $240 million
• D) $7 million; $70 million

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Definitions:

Polygynous

A mating system in which a male has more than one female partner at the same time.

Cultures

The shared beliefs, practices, symbols, language, art, and values of a group of people, passed down from generation to generation.

Sororal Polygyny

A form of polygyny where a man is married to multiple wives who are sisters to each other, often practiced in some polygamous societies to strengthen family bonds.

Co-Wives

Women who are married to the same man at the same time, often in cultures that practice polygamy.