Table 10-2 -Refer to the Table 10-2.If the Reserve Requirement Is 10

question 6

Multiple Choice

Table 10-2

-Refer to the Table 10-2.If the reserve requirement is 10 percent and then someone deposits $50 000 into the bank,what is the bank's reserve position?

• A)It will have $57 000 in excess reserves.
• B)It will have $52 000 in excess reserves.
• C)It will need to raise reserves by $5000.
• D)It will have excess reserves of $2000.

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Definitions:

Probable Cause

A reasonable ground for belief, based on facts, that a person may have committed a crime, often used as a requirement for the issuance of arrest warrants and searches.

Search Warrant

A legal document authorizing a police officer or other official to enter and search premises.

Strict Scrutiny

The most exacting standard of review used by the courts in determining the constitutionality of a statute; requires a compelling government interest and the least restrictive means of attaining that objective.

Fourth Amendment

A provision in the U.S. Constitution that protects individuals from unreasonable searches and seizures by the government.