Suppose the ABC Bank Has Excess Reserves of $4,000 and Outstanding

question 61

Multiple Choice

Suppose the ABC bank has excess reserves of $4,000 and outstanding checkable deposits of $80,000. If the reserve requirement is 25 percent, what is the size of the bank's actual reserves?

• A) $16,000
• B) $84,000
• C) $24,000
• D) $20,000

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Definitions:

Job Satisfaction

The level of contentment or happiness an individual feels regarding their job, influenced by factors like work environment, pay, and perceived value.

Power Inequalities

Disparities in control, authority, or influence among individuals or groups within a society or organization.

Uncertainty Avoidance Cultures

Societies that have a low tolerance for ambiguity and uncertainty, often relying on strict rules and procedures to manage situations.

Long-Term Employment

A work arrangement where an employee is engaged with an organization for an extended period, often leading to greater job security and benefits.