If a Bank Has Excess Reserves of $4,000 and Demand

question 148

Multiple Choice

If a bank has excess reserves of $4,000 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)$19,000.
• C)$24,000.
• D)$29,000.

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Definitions:

Glycosuria

The presence of glucose in the urine, typically an indication of diabetes mellitus.

Bilirubin

A yellow compound that occurs in the normal catabolic pathway that breaks down heme in red blood cells, its levels are tested to check liver function.

Acute Glomerulonephritis

Rapid onset inflammation of the glomeruli, which are small structures in the kidneys that filter blood.

Urinalysis

A test of urine to detect and manage a wide range of disorders, such as urinary tract infections, kidney disease, and diabetes.