Scenario 29-1 The Monetary Policy of Tazi Is Controlled by the Country's

question 12

Multiple Choice

Scenario 29-1
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the Tazian dollar. Aggregate banking statistics show that collectively the banks of Tazi hold $375 million of required reserves, $225 million of excess reserves, have issued $7,500 million of deposits, and hold $750 million of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 29-1. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks?

• A)8 percent, 10 percent
• B)5 percent, 10 percent
• C)5 percent, 8 percent
• D)8 percent, 5 percent

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Definitions:

Negative Stereotypes

Overgeneralized and unfavorable beliefs about a group, which often lead to prejudice and discrimination.

Black Women

Women of African descent, often highlighting their unique cultural, social, and historical experiences.

Mammy

A stereotypical image of a black woman, depicted as devoted and submissive, serving her white employers.

Stereotype Threat

The risk of confirming negative stereotypes about one’s social group, which can impair performance and contribute to disparities.