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

question 194

Multiple Choice

Suppose a bank has $1 million in deposits, a reserve requirement of 20%, and bank reserves of $400,000. The bank has excess reserves of

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

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Definitions:

Regulatory Forces

Governmental laws and regulations at the local, state, national, or international level that affect the operations and strategies of businesses.

Department of Health

A government body responsible for protecting public health, including managing healthcare policy, regulations, and services.

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Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 aimed at preserving competitive markets by prohibiting monopolies and restraint of trade.