The Following Table Shows the Assets and Liabilities for Safeco

question 94

Multiple Choice

The following table shows the assets and liabilities for Safeco Bank.

-Refer to the table above.What is Safeco Bank's required reserve ratio if the bank has $15,000 in excess reserves?

• A) 5 percent
• B) 10 percent
• C) 15 percent
• D) 20 percent

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Definitions:

Long-Run Adjustment

Economic processes or actions that firms take over time to adjust to market conditions, including changes in production capacity or entering and exiting markets.

Foreign Competition

The competitive pressure that domestic companies face from products and services offered by foreign entities in the same market.

Branch Plants

Secondary factories or operations set up by a company away from its main premises, often in different geographical locations.

Short Run

A period during which at least one factor of production is fixed, limiting the ability to adjust to changes in market demand.