If Bank of Mateer Has a Required Reserve Ratio of 40

question 118

Multiple Choice

If Bank of Mateer has a required reserve ratio of 40 percent and there is $100,000 in deposits,what is the amount of required reserves?

• A) $100,000
• B) $15,000
• C) $40,000
• D) $60,000
• E) $0

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Definitions:

Abscission

Process by which plant parts are shed.

Ethylene

A gaseous plant hormone that regulates a wide range of biological processes, including fruit ripening and leaf abscission.

Hormone

A biochemical produced by the body that oversees and adjusts the activities of select cells or organs.

Cytoplasmic Division

The process, also known as cytokinesis, by which a cell's cytoplasm divides, producing two daughter cells after nuclear division has occurred.