If Bank a Holds $200 in Reserves, Deposits Are $1000

question 305

Multiple Choice

If Bank A holds $200 in reserves, deposits are $1000, and the required reserve ratio is 15 percent, how much are excess reserves?

• A) zero, because banks never hold excess reserves
• B) $200
• C) $50
• D) $150

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Definitions:

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A system in which individuals are owned as property by others and are forced to work without consent and with little to no personal freedom.

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Refers to the rights and freedoms specifically pertaining to Black individuals, often encompassing issues of civil rights, social justice, and equality.

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A successful slave rebellion that began in 1791, leading to the establishment of Haiti as an independent nation in 1804, the first to abolish slavery.