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

question 19

Multiple Choice

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

-Refer to the table above.If Bank A maintained the same reserve ratio,but its deposits increased to $15,000,how much in reserves must the bank now hold?

• A) $2,050
• B) $2,135
• C) $3,150
• D) $3,850

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Definitions:

Price Fixing

An illegal practice where businesses collude to set prices at a certain level, rather than allowing market forces to determine them.

Microsoft

A multinational corporation that specializes in the development, manufacturing, licensing, support, and sales of computer software, consumer electronics, and personal computers and services.

Antitrust Policy

Regulations and laws that encourage competition by limiting monopolies, preventing mergers that would restrict competition, and other business practices that would reduce consumer welfare.

Tacit Collusion

An unspoken, informal agreement among competitors to limit competition and keep prices high.