Assume That a Bank Must Keep Reserves of 20% Against

question 36

Multiple Choice

Assume that a bank must keep reserves of 20% against deposits. The bank receives a primary deposit of $50,000. What amount of excess reserves can the bank safely lend?

• A) $10,000
• B) $20,000
• C) $40,000
• D) $50,000

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Definitions:

Civil Rights Act of 1964

Landmark U.S. legislation that outlawed discrimination based on race, color, religion, sex, or national origin, especially in the areas of employment and public accommodations.

Civil Rights Act

Landmark legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin, primarily associated with the Act of 1964.

Sex stereotyping

Holding people to traditional expectations and behaviors based on their gender, which can result in discrimination and unfair treatment.

Gay and transgender employees

Workers who identify as homosexual or whose gender identity differs from the sex they were assigned at birth, and who may face specific legal protections or challenges in the workplace.