If a Bank Has Excess Reserves of $7,000 and Demand

question 89

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 15 percent,then the bank has actual reserves of

• A)$17,000.
• B)$22,000.
• C)$27,000.
• D)$29,000.

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Definitions:

Validation

The acknowledgement and acceptance of another person's feelings, thoughts, and experiences as legitimate and significant.

Exhuming

The act of digging up a corpse from the ground, often for legal, medical, or investigative reasons.

Interment

The burial of a body in a grave or tomb, typically with funeral rites.

Levirate

A practice in some cultures where a widow marries a brother of her deceased husband to maintain lineage and inheritance.