Table 13-2 Refer to Table 13-2

question 174

Multiple Choice

Table 13-2 Refer to Table 13-2. If the reserve requirement is 20 percent, this bank

• A) has $10,000 of excess reserves.
• B) needs $10,000 more reserves to meet its reserve requirements.
• C) needs $5,000 more reserves to meet its reserve requirements.
• D) just meets its reserve requirement.

---

Definitions:

Sealed-Bid

A bidding process where all bids are submitted confidentially and unopened until the designated time.

Lemons

A citrus fruit known for its sour taste, also used metaphorically to describe a defective or unsatisfactory product or vehicle.

Expected Value

A calculated average of all possible outcomes of a random variable, weighted by their probabilities.

English Auction

A type of auction in which the price starts low and is progressively bid upwards, with the highest bid at the end winning the item.