Assuming a Required Reserve Ratio of 8%,interest Rate on Reserves

question 44

Multiple Choice

Assuming a required reserve ratio of 8%,interest rate on reserves of 0.5%,and interest rate on loans of 4%,what is the effective cost of the reserve requirement on a $1,000 deposit?

• A) 0.05%
• B) 0.28%
• C) 0.32%
• D) 4%

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Definitions:

Cultural Symbols

Signs or objects that carry a particular meaning recognized only by members of a culture, serving to communicate ideals, values, and beliefs.

Normative Controls

Informal methods of regulating behavior within an organization through shared norms, values, and beliefs.

Subculture Jargon

Specialized or technical language used within a specific subculture, which may not be understood outside of that group.

Shared Meanings

Common understanding or interpretations among individuals or groups about symbols, language, or concepts.