Suppose That from a New Checkable Deposit,First National Bank Holds

question 91

Multiple Choice

Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,eight million dollars on deposit with the Federal Reserve,and nine million dollars in excess reserves. Given this information,we can say First National Bank faces a required reserve ratio of ________ percent.

• A)ten
• B)twenty
• C)eighty
• D)ninety

---

Definitions:

Per Capita Basis

A measurement that averages a particular figure or statistic for each individual within a given population.

Root Cause

The fundamental reason for the occurrence of a problem, fault, or issue, which, when resolved, prevents a recurrence.

Environmental Problems

Issues affecting the global environment including pollution, global warming, deforestation, and loss of biodiversity.

Population Growth

The increase in the number of individuals in a population, often influenced by factors such as birth rates, death rates, and migration.