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:

Trophoblast

The outer cell layer of a late blastocyst, which in placental mammals gives rise to the chorion and to the fetal contribution to the placenta.

Blastocyst

An early stage of mammalian embryonic development, characterized by a sphere of cells surrounding a fluid-filled cavity and an inner cell mass that will develop into the fetus.

Limb Buds

The early developmental structures in vertebrate embryos which will develop into the limbs (arms and legs).

Muscles Differentiate

The process by which muscle cells undergo specialization, acquiring characteristics specific to muscle tissue types such as skeletal, cardiac, or smooth muscle.