Given the Balance Sheet Below and Assuming a Required Reserve

question 224

Multiple Choice

Given the balance sheet below and assuming a required reserve ratio of 20 percent,how much (in dollar terms) must the bank hold in required reserves?

• A) $2 million
• B) $3 million
• C) $4 million
• D) $7 million
• E) $16 million

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Definitions:

Dorsogluteal Site

An injection site located in the buttock muscle, used for administering certain medications intramuscularly.

Sciatic Nerve

The largest nerve in the human body, extending from the lower back through the hips and buttocks and down each leg, responsible for controlling many muscles in the lower limbs.

Liver

A large, vital organ in the human body responsible for numerous functions including detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Kidney

A bean-shaped organ in vertebrates that filters waste products from the blood and excretes them as urine, also involved in regulating blood pressure and electrolyte balance.