Suppose the Desired Reserve Ratio Is 10 Percent

question 369

Multiple Choice

Suppose the desired reserve ratio is 10 percent.If the Commerce Bank has total deposits of $20,000,total assets of $10,000,and actual reserves of $8000,the amount of excess reserves is

• A)$2,000.
• B)$6,000.
• C)$800.
• D)$100.
• E)$0.

Recognize density-dependent and density-independent factors affecting population sizes.

Understand the concept of assimilation and accommodation as ways humans adapt cognitively according to Piaget.

Recognize the stages of cognitive development outlined by Piaget and the characteristics of each stage.

Identify the mechanisms of cognitive change (equilibration, disequilibrium) in Piaget's theory.

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Definitions:

Par Value

The nominal value of a bond or the stated value of stock as documented in the company's charter, frequently utilized in official paperwork.

Ask Price

The lowest price a seller is willing to accept for an asset in the financial markets; it contrasts with the bid price, which is the highest price a buyer is willing to pay.

Coupon Bond

A type of bond that provides periodic interest payments to its holder, based on a fixed interest rate (coupon rate) until its maturity, at which point the principal amount is repaid.

Accrued Interest

The interest that has accumulated on a bond since the last interest payment was made, which the buyer of the bond must pay to the seller if the bond is bought between interest payment dates.