If a Bank Has Excess Reserves of $10,000 and Demand

question 53

Multiple Choice

If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has actual reserves of

• A)$16,000.
• B)$20,000.
• C)$26,000.
• D)$36,000.

---

Definitions:

Small Groups

Collections of individuals who interact with each other, usually face-to-face, in a way that each person influences and is influenced by each other.

Likert Scale

A technique for measuring attitudes that asks a respondent to indicate the extent to which he or she agrees with each of a series of statements about an object.

Reliability

The degree to which a measuring instrument produces the same results each time it is employed under a set of specified conditions.

Different Participants

Refers to the diverse members or individuals who take part in a study, survey, or any given activity or process.