A Bank Faces a Required Reserve Ratio of 5 Percent

question 115

Multiple Choice

A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?

• A) $0
• B) $5 million
• C) $10 million
• D) $15 million

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Definitions:

Heterozygote

An individual having two different alleles of a specific gene, resulting in genetic variation within a population.

Mutations

Changes in the DNA sequence of an organism's genome, which can lead to variations in physical appearance, behavior, or physiology.

Viruses

Microscopic infectious agents that replicate only inside the living cells of organisms, causing various diseases.

Beneficial

Producing good effects or advantageous outcomes; helpful or favorable.