If a Bank That Faces a 25 Percent Reserve Ratio

question 158

Multiple Choice

If a bank that faces a 25 percent reserve ratio received a deposit of $30,000 and makes a loan to a customer for $10,000,what is the consequence if the bank then deposits the rest of the funds at the Federal Reserve?

• A) Excess reserves increase by $30,000.
• B) Excess reserves increase by $20,000 and required reserves increase by $10,000.
• C) Excess reserves increase by $12,500 and required reserves increase by $7,500.
• D) Required reserves increase by $17,500.
• E) Reserves are not affected.

Understand that Chebyshev's Theorem provides a way to estimate the spread of any data set, regardless of its distribution.

Grasp the interpretation of standard deviation in the context of different distributions and its comparison through the use of the coefficient of variation.

Understand the importance and functions of strategic planning in nonprofit organizations.

Identify the tools and models used in strategic planning and organizational assessment.

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Definitions:

Sieve Tube Elements

Specialized cells in the phloem of vascular plants that are responsible for transporting sugars and other metabolic products downwards from the leaves.

Active Transport

The movement of molecules across cell membranes against their concentration gradient, requiring energy typically in the form of ATP.

Herbaceous Eudicot

A group of flowering plants that are characterized by having two cotyledons, or seed leaves, and typically have non-woody, soft stems.

Monocot

A group of flowering plants whose seeds typically contain one embryonic leaf, known for having parallel leaf veins and various other structural differences from dicots.