Suppose That the Bank of Apples Has Excess Reserves of $450,000

question 90

Multiple Choice

Suppose that the Bank of Apples has excess reserves of $450,000 and checkable deposits of $30,000,000.If the bank has a reserve requirement of 30 percent,what is its total amount of reserves?

• A) $8,550,000
• B) $9,000,000
• C) $9,450,000
• D) $30,135,000
• E) $30,450,000

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Definitions:

Competition

The rivalry among businesses to attract customers, striving to achieve such goals as higher sales, market share, and innovation.

Price

The amount of money required to purchase a good or service.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities, aiming to generate profits.

Marginal Cost

The increase in total production costs that arises from producing an additional unit of a good or service.