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

question 169

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 10 percent,then the bank has actual reserves of

• A)$14,000.
• B)$17,000.
• C)$22,000.
• D)$27,000.

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Definitions:

National Football League

A professional American football league consisting of 32 teams, divided equally between the National Football Conference (NFC) and the American Football Conference (AFC).

Mean Number

The average of a set of numbers, calculated by dividing the sum of all values by the count of values.

Home Runs

In baseball, a hit by a batter that allows them to circle all the bases, reaching home safely in one play, usually by hitting the ball over the outfield fence.

American League

One of two leagues making up Major League Baseball (MLB) in the United States and Canada, featuring teams such as the New York Yankees and Boston Red Sox.