Suppose a Bank Has $6,000 in Checkable Deposits and the Required

question 126

Multiple Choice

Suppose a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2.If the bank wishes to hold no excess reserves,its actual reserves will be:

• A)$4,000.
• B)$1,200.
• C)$3,000.
• D)less than $1,000.
• E)$4,800.

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Definitions:

Adjusted Gross Income

A measure of income calculated from your gross income and allows specific deductions, impacting tax liability.

Medical Care Insurance Premiums

The costs paid for insurance policies that cover medical and surgical expenses; these premiums are often deductible on individual tax returns if certain criteria are met.

Medical Expenses

Costs related to healthcare, including treatments, surgeries, and preventive services, which may be deductible under certain tax conditions.

Itemized Deductions

Specific expenses that taxpayers can claim to reduce their taxable income, as opposed to taking the standard deduction.