If the Desired Reserve Ratio Is 15 Percent,then for Every

question 333

Multiple Choice

If the desired reserve ratio is 15 percent,then for every dollar that is deposited in the bank,the bank will

• A)keep 15 cents as reserves.
• B)keep 85 cents as reserves.
• C)keep 85 cents as reserves and loan 85 cents.
• D)loan 15 cents.
• E)keep 15 cents as reserves and loan 15 cents.

---

Definitions:

Unit Prices

The cost of a given unit of product or service.

Experience Curve Rate

The rate at which costs decrease as a result of gains in efficiency and experience over time.

Unit Costs

The expenses a company incurs in manufacturing, storing, and selling a single unit of a specific product or service.

Microprocessor

An integrated circuit that contains the functions of a computer's central processing unit (CPU) on a single microchip, enabling digital computing and controlling electronic devices.