If a Bank Has $10 Million of Checkable Deposits,a Required

question 88

Multiple Choice

If a bank has $10 million of checkable deposits,a required reserve ratio of 10 percent,and it holds $2 million in reserves,then it will not have enough reserves to support a deposit outflow of

• A)$1.2 million.
• B)$1.1 million.
• C)$1 million.
• D)$900,000.

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Definitions:

Low-pitched

Sound that is deep or rich in tone, indicating a frequency at the lower end of the audible spectrum.

Cardiovascular Sounds

The sounds made by the heart and blood within the arteries and veins, often assessed for diagnosing heart conditions.

Trigeminal

Pertaining to the trigeminal nerve, the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Cranial Nerve

One of the twelve nerves that originate in the brain and control sensory and motor functions of the head and neck.