Suppose a Bank Has $100,000 in Checking Account Deposits with No

question 55

Multiple Choice

Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent.If the Federal Reserve raises the required reserve ratio to 12 percent,then the bank will now have excess reserves of

• A)$12,000.
• B)$0.
• C)-$2,000.
• D)-$12,000.

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Definitions:

Brachial

Relating to the arm, specifically the upper arm from the shoulder to the elbow.

Calibrating

The process of adjusting and setting the accuracy of a measuring instrument to ensure it meets its specified and intended use.

Balance Beam Scale

is a type of weighing scale that uses a balance beam to measure mass through a comparison of known weights.

Bladder Length

A measure of the physical dimension of the urinary bladder from base to apex.