If a Bank Has $200,000 of Checkable Deposits,a Required Reserve

question 73

Multiple Choice

If a bank has $200,000 of checkable deposits,a required reserve ratio of 20 percent,and it holds $80,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A)$50,000.
• B)$40,000.
• C)$30,000.
• D)$25,000.

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Definitions:

Peripheral Nervous Systems

The portion of the nervous system consisting of nerves and ganglia outside of the brain and spinal cord, connecting the limbs and organs to the central nervous system.

Central

Pertaining to the most important or core part of something, often indicating its significance or pivotal role.

Somatic Nervous System

Division of the peripheral nervous system that controls skeletal muscles and relays sensory signals about movements and external conditions.

Skeletal Muscles

Muscles attached to the bones of the skeleton, responsible for voluntary movements of the body.