Suppose a Credit Union Has Checkable Deposits of $500,000 and the Legal

question 42

Multiple Choice

Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual reserves are

• A) $46,000.
• B) $50,000.
• C) $54,000.
• D) $4,000.

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Definitions:

Specific Business

Pertains to a particular company, industry, or commercial enterprise that is identified or distinguished by unique characteristics.

Filibustering

A legislative tactic used to prolong debate and delay or block a vote on a proposal.

Structure

The organization or arrangement of parts, elements, or components of something, forming a coherent whole.

Use Of Time

The manner in which an individual or organization allocates and manages time to fulfill tasks, goals, and priorities.