If Bulge Bank Has a Desired Reserve Ratio of 10

question 96

Multiple Choice

If Bulge Bank has a desired reserve ratio of 10 percent,loans of $25,000,deposits of $100,000,vault cash of $10,000,and reserves at the Fed of $65,000,then the bank

• A)has no remaining capacity to make loans.
• B)does not have enough reserves to meet its requirement.
• C)has excess reserves of $65,000.
• D)has excess reserves of $55,000.
• E)has excess reserves of $75,000.

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Definitions:

Pay Increase

An upward adjustment in an individual's salary or wages, often recognized as a reward for performance or due to changes in market conditions.

Labor Negotiations

The process of collective bargaining between employers and employees (or their representatives) over wages, working conditions, benefits, and other aspects of workers' compensation and rights.

Mandatory Items

Including wages, working hours, and benefits, must be included as part of collective bargaining if either party expresses a desire to negotiate one or more of them.

Negotiating Party

A group or individual that enters into discussion with others to reach an agreement or resolve differences.