Use the Following to Answer Questions

question 59

Multiple Choice

Use the following to answer questions .
Exhibit: Reserves, Loans, and Money

-(Exhibit: Reserves, Loans, and Money) The required reserve ratio is 10%. What is the amount of Bolton Bank's required reserves?

• A) $30 million
• B) $70 million
• C) $100 million
• D) $300 million

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Definitions:

Variable Costs

Variable Costs are expenses that change in direct proportion to the volume of output or activity in a business, such as materials and labor.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity produced.

Total Costs

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

TC Curve

A graphical representation showing the total cost of producing different quantities of a good or service.