The Accompanying Table Gives Data for a Commercial Bank or |

question 16

Multiple Choice

$$\begin{array} { | c | c | c | c | c | } \hline & \text { Reserve Requirement (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } & \text { Excess Reserves } \\\hline ( 1 ) & \underline { W } & \$ 100,000 & \$ 10,000 & \$ 0 \\\hline ( 2 ) & 8 & \underline { X } & 20,000 & 12,000 \\\hline ( 3 ) & 12 & 200,000 & \underline { Y } & 8,000 \\\hline ( 4 ) & 20 & 300,000 & 70,000 & \underline { Z } \\\hline\end{array}$$ The accompanying table gives data for a commercial bank or thrift. In row 1, the number appropriate for space W is

• A) 4.
• B) 6.
• C) 10.
• D) 12.

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Definitions:

Equities

Financial assets representing ownership in a corporation, such as stocks, or a means to assess fairness or justice within the context of legal proceedings.

Compensatory Damages

Monetary awards given to a plaintiff to compensate for losses or injuries suffered as a result of the defendant's actions.

Plaintiff

The party who initiates a lawsuit in court seeking legal remedy from the defendant.

Contract

An agreement that is enforceable by law and involves two or more parties, making it legally binding.