Assume That the Reserve Requirement Is 10 Percent

question 41

Multiple Choice

Assume that the reserve requirement is 10 percent.A $1, 000 cash deposit into a savings account will immediately increase the bank's required reserves by _____.

• A)$10, 000.
• B)$500.
• C)$100.
• D)$1, 500.
• E)$10.

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Definitions:

Detergent

A chemical compound used to remove dirt and grease, commonly used in cleaning processes due to its surfactant properties.

Ratchet

Locking mechanism of an instrument.

Locking Mechanism

A device or feature designed to prevent the operation or movement of a piece of machinery or equipment until it is unlocked.

Towels Dressings

Absorbent materials, such as towels, used for covering and protecting wounds to absorb discharge and facilitate healing.