Suppose That the Reserve Ratio Is 5 Percent and That

question 133

Multiple Choice

Suppose that the reserve ratio is 5 percent and that a bank has $3000 in deposits.What are its required reserves?

• A)$50
• B)$150
• C)$500
• D)$1500

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Definitions:

Insider Trading

Using inside information to either cheat the corporation or take unfair advantage of corporate outsiders.

Material

The substance or substances from which a thing is or can be made, often used in contexts involving physical objects or the fabric of physical, tangible items.

Nonpublic

Information or entities not available or accessible to the general population, often restricted due to privacy or confidentiality considerations.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly voting rights.