Suppose a Bank Has $8,000 in Checkable Deposits and the Required

question 66

Multiple Choice

Suppose a bank has $8,000 in checkable deposits and the required reserve ratio is 0.2.If actual reserves equal $3,000,then excess reserves equal:

• A)$1,600.
• B)$1,400.
• C)$2,400.
• D)$5,000.
• E)zero.

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Definitions:

Voltmeter

An instrument used for measuring electric potential difference between two points in an electric circuit.

Low-impedance

Refers to a circuit or device having a relatively low resistance to the flow of electrical current.

High Power Circuits

Electrical circuits designed to handle and manage high levels of electrical power, often used in industrial applications and power transmission.

Low Voltage Circuits

Electrical circuits that operate at a relatively low voltage, typically for safety and signal purposes.