Suppose a Bank Has $1 Million in Deposits, a Reserve

question 72

Multiple Choice

Suppose a bank has $1 million in deposits, a reserve requirement of 10%, and bank reserves of $300,000. The bank has excess reserves of

• A) $50,000.
• B) $100,000.
• C) $200,000.
• D) $300,000.

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Definitions:

Calcium

A chemical element and an essential nutrient for living organisms, critical for bone health, muscle function, and nerve signaling.

Sodium

A chemical element (Na) that is an essential mineral for life, involved in nerve impulse transmission and muscle function.

Aerobic Respiration

The process by which cells convert glucose and oxygen into energy, carbon dioxide, and water, requiring oxygen to proceed.

Creatine Phosphate

A molecule that stores energy in muscle cells, releasing it quickly to produce ATP during intense physical activity.