If a Bank That Faces a 10 Percent Reserve Ratio

question 147

Multiple Choice

If a bank that faces a 10 percent reserve ratio received a deposit of $50,000 and makes a loan to a customer for $5,000,what is the consequence if the bank then deposits the rest of the funds at the Federal Reserve?

• A) Excess reserves increase by $50,000.
• B) Excess reserves increase by $45,000 and required reserves increase by $5,000.
• C) Excess reserves increase by $5,000 and required reserves increase by $45,000.
• D) Excess reserves increase by $40,000 and required reserves increase by $5,000.
• E) Reserves are not affected.

Distinguish between intrinsic and extrinsic sources of self-esteem and their impacts on behavior.

Understand the role of self-monitoring in adapting behavior across different social situations.

Analyze the strategies individuals use to manage impressions and exert power in social interactions.

Describe the stability and variability of self-esteem and its effects on personal well-being.

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Definitions:

Battery Assault

An intentional act that causes harmful or offensive physical contact with another person; often used interchangeably with "battery" in legal contexts.

Question Of Law

An issue concerning the interpretation or application of the law, typically decided by a judge, as opposed to questions of fact, which are decided by a jury.

Court

A governmental institution authorized to resolve legal disputes, interpret laws, and administer justice.

Appeal

A formal process whereby a higher court will re-examine a decision made by a lower court.