If a Bank Has Excess Reserves of $10,000 and Demand

question 53

Multiple Choice

If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has actual reserves of

• A)$16,000.
• B)$20,000.
• C)$26,000.
• D)$36,000.

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Definitions:

Urie Bronfenbrenner

A developmental psychologist known for introducing the ecological systems theory to explain how the inherent qualities of a child and their environment interact to influence development.

Lev Vygotsky

was a Russian psychologist known for his work on cognitive development, particularly the concept of the Zone of Proximal Development and the importance of sociocultural influences.

Jean Piaget

Jean Piaget was a Swiss developmental psychologist known for his theory of cognitive development that describes how children construct a mental model of the world.

Nature-Nurture Controversy

The ongoing debate over the relative contributions of genetic inheritance and environmental factors to human development and behavior.