The FUN Bank Has No Excess Reserves When a New

question 156

Multiple Choice

The FUN Bank has no excess reserves when a new deposit of $20,000 is made.The desired reserve ratio is 5 percent.After the deposit,but before making any loans,how much does The FUN Bank have in excess reserves?

• A)$1,000
• B)$20,000
• C)$9,000
• D)$19,000
• E)$21,000

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Definitions:

Anorexia Nervosa

An eating disorder characterized by an irrational fear of weight gain, leading individuals to starve themselves or use other methods to lose weight.

Bulimia Nervosa

An eating disorder characterized by periods of binge eating followed by purging, fasting, or excessive exercise to prevent weight gain.

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An eating disorder characterized by recurrent and frequent episodes of eating unusually large amounts of food followed by behavior that compensates for the binge, such as self-induced vomiting.