Assume That the Required Reserve Ratio Is 5 Percent

question 41

Multiple Choice

Assume that the required reserve ratio is 5 percent.If a commercial bank has $2 million cash in its vault, $1 million in government securities, $3 million on deposit at the Fed, and $60 million in checkable deposits, then its excess reserves equal

• A)$0 million.
• B)$2 million.
• C)$5 million.
• D)$6 million.

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Definitions:

Temperature-Pressure History

The record of variations in temperature and pressure that a geological body has experienced over time, crucial for understanding metamorphic processes and the conditions of mineral formation.

Shortened

The term shortened in a geological sense refers to a reduction in the horizontal extent of the Earth's crust, often resulting from tectonic processes such as mountain building (orogeny).

Vertical Direction

An orientation that is perpendicular to the horizon, pointing up or down from the observer's perspective.

Horizontal Direction

Pertains to anything oriented or moving left to right or parallel to the horizon, opposite of vertical.