If a Commercial Bank Has Checkable Deposit Liabilities of $50,000

question 87

Multiple Choice

If a commercial bank has checkable deposit liabilities of $50,000 and the required reserve ratio is set at 12%, the commercial bank must hold how much in reserves assets?

• A)None. It is not mandatory to hold reserves.
• B)$3,000
• C)$6,000
• D)$44,000

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Definitions:

Flexible Schedule

A work arrangement allowing employees variability in their working hours and patterns, promoting work-life balance.

Job Enrichment

Increasing the depth of a job through more challenging and complex tasks to enhance employee satisfaction and performance.

Vertical Direction

Refers to the upward or downward movement or orientation, often used in describing organizational hierarchies or architectural designs.

Responsibility And Control

Pertains to the obligations and authority assigned to individuals or organizations to manage tasks or operations effectively.