If a Bank Has Actual Reserves of $40,000 and a 20

question 111

Multiple Choice

If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is

• A) $100,000.
• B) $80,000.
• C) $300,000.
• D) $20,000.
• E) $200,000.

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Definitions:

Point

A singular location in space that can represent a position on a graph or in a geometric context.

Slope-Intercept Form

A linear equation of the form y = mx + b, where m is the slope and b is the y-intercept.

Equation

A statement that asserts the equality of two expressions, usually represented by the symbol "=".

Slope-Intercept Form

A way of writing the equation of a line as y = mx + b, where m is the slope and b is the y-intercept.