The Following Table Shows a T-Account for Bank a in a New

question 43

Multiple Choice

The following table shows a T-account for Bank A in a new economy.

-Refer to the table above.If the required reserve ratio is 5 percent,how much is Bank A currently holding in excess reserves?

• A) $0
• B) $400
• C) $800
• D) $1,200

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Definitions:

Organic Produce

Food products that are grown without the use of synthetic pesticides, fertilizers, genetically modified organisms, or ionizing radiation.

Store Brand

Products marketed and sold under a retail store's brand name, often positioned as lower-cost alternatives to national brands.

Income Effect

The change in an individual's or economy's consumption choices as income increases or decreases.

Price Elastic

The responsiveness of the demand for a product or service to changes in its price, affecting sales volume and revenue.