Suppose Total Deposits in the First Bank of Commerce Are

question 50

Multiple Choice

Suppose total deposits in the First Bank of Commerce are $200,000 and required reserves are $10,000. Based on this information, the required reserve ratio is:

• A)0.05.
• B)0.10.
• C)0.20.
• D)20.0.

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Definitions:

Price Level

The summarised price average of every good and service within the economic domain.

Output Levels

Output levels refer to the quantity of goods and services produced by an economy or firm during a specific period.

Recessionary Gap

A situation in which the real GDP of an economy is lower than its potential GDP at the full employment level, indicating underutilized resources.

Actual Output

Actual output refers to the real GDP or the total value of all goods and services produced in an economy at a given time, contrasting with potential output.