Suppose the Desired Reserve Ratio Is 10 Percent

question 9

Multiple Choice

Suppose the desired reserve ratio is 10 percent.If Urban Bank has total deposits of $1,000 and total assets of $10,000,the amount of desired reserves is

• A)$100.
• B)$900.
• C)$1,000.
• D)$9,000.
• E)$1,100.

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Definitions:

Distribution

The process of delivering products, goods, or services from the production point or supplier to the end consumer.

Price Adjustment Contract

A contractual agreement that allows for changes in the price based on certain conditions or indices, often used to account for inflation or cost increases.

Economic Changes

Adjustments or shifts in the conditions of an economy, affecting factors like prices, jobs, and wealth distribution.

Currency Values

The worth of different forms of money in terms of one another, impacting international trade and economics.