Table 29-4 -Refer to Table 29-4.If the Fed Requires Banks to Hold

question 275

Multiple Choice

Table 29-4

-Refer to Table 29-4.If the Fed requires banks to hold 5 percent of deposits as reserves,how much in excess reserves does the Bank of Tampa now hold?

• A)$25
• B)$50
• C)$55
• D)$75

---

Definitions:

Law Of Supply

The principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

High Prices

A situation where the cost of goods or services is significantly above average or expected levels.

Low Prices

Low prices refer to the situation where goods or services are offered on the market at particularly reduced costs, often reflecting supply and demand dynamics or promotional strategies.