Assume That the Reserve Requirement Is 20

question 235

Multiple Choice

Assume that the reserve requirement is 20%. A bank has $20 billion in demand deposits. How much money does the bank have to keep in reserves?

• A) $2 billion
• B) $4 billion
• C) $10 billion
• D) $20 billion

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Definitions:

Functional Needs

The basic or practical needs that a product or service fulfills for the customer.

Affective Component

A component of attitude that reflects what a person feels about the issue at hand—his or her like or dislike of something.

Psychological

Pertaining to the mind or mental processes, affecting or involving the psychological state.

Lululemon Customers

Lululemon customers are individuals or groups who purchase athletic apparel and accessories from the Lululemon brand, known for its yoga and fitness-related products.