Suppose That While Vacationing in Switzerland, You Won 9,375 Swiss

question 125

Multiple Choice

Suppose that while vacationing in Switzerland, you won 9,375 Swiss francs, which is the equivalent of $8,000. When you return to the United States, you deposit the $8,000 into your checking account. If the required reserve ratio is 15 percent, this would increase your bank's

• A) liabilities by $8,000.
• B) excess reserves by $8,000.
• C) required reserves by $8,000.
• D) assets by $1,200.

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Definitions:

Productive Activities

Tasks or processes that lead to the creation of goods or services which have value and contribute to the economy.

Ethics Committee

A group responsible for overseeing the ethical aspects of an organization's operations, including making decisions on moral and ethical issues.

Ethical Dilemmas

Situations where individuals are required to choose between two conflicting moral principles, making it challenging to determine the right course of action.