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.

---

Definitions:

Spam Canned Meat

A brand of canned cooked pork made by Hormel Foods Corporation, often associated with affordable, long-lasting food options.

Match Light Charcoal

A type of charcoal that has been pretreated with a lighter fluid to simplify the ignition process.

Bayer Aspirin

A brand of aspirin produced by the Bayer company, used as an analgesic for pain relief, fever reduction, and anti-inflammatory purposes.

Phonetic Associations

The relationship between sounds and meanings in language, which can influence brand name perception and memory.