Suppose a Bank Has $200,000 in Deposits, a Reserve Ratio

question 151

Multiple Choice

Suppose a bank has $200,000 in deposits, a reserve ratio of 10 percent, and reserves of $45,000. This bank has excess reserves of

• A) $155,000.
• B) $25,000.
• C) $10,000.
• D) $5,000.

---

Definitions:

Produced Units

The total quantity of completed goods produced by a company over a given time frame.

Indirect Manufacturing Cost

Expenses related to production that are not directly tied to a specific product, such as maintenance and utilities.

Produced Units

The total number of units manufactured within a specific period.

Direct Manufacturing Cost

The total of direct materials and direct labor costs that are tied directly to the production process of a product.