Suppose a Bank Has $8,000 in Chequable Deposits and the Desired

question 94

Multiple Choice

Suppose a bank has $8,000 in chequable deposits and the desired reserve ratio is 0.2.And suppose actual reserves equal $3,000.What do excess reserves equal?  

• A) $1,400 
• B) $1,600 
• C) $2,400 
• D) $5,000

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Definitions:

Experiential Factors

Elements and influences arising from personal experiences that shape an individual's development, behaviors, and perceptions.

Biological Factors

Genetic, neurological, and physical conditions that affect human behavior and physical health.

Gender Constancy

The understanding that one's gender is fixed and does not change over time, typically developed by age 6 or 7.

Independently

The capability of doing something without being directed or influenced by other people.