A Customer of a Bank Needs Additional Currency and Cashes

question 18

Multiple Choice

A customer of a bank needs additional currency and cashes a check for $10,000. The reserve requirement is 20%. The bank has no excess reserves. It must

• A) refuse the check.
• B) get an additional $8,000 of reserves.
• C) get an additional $2,000 of reserves.
• D) transfer $10,000 of reserves to the Fed.

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Definitions:

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Structured Problem

A problem defined by clear parameters, with known processes and potential solutions, allowing for systematic analysis and resolution.

Unstructured Problem

A problem that lacks a clear path to the solution, often requiring creative thinking or innovative approaches.

Programmed Problem-solving Methods

Structured and often automated approaches or algorithms designed to address specific types of problems in a systematic way.