If a Bank Has $10 Million of Checkable Deposits,a Required

question 88

Multiple Choice

If a bank has $10 million of checkable deposits,a required reserve ratio of 10 percent,and it holds $2 million in reserves,then it will not have enough reserves to support a deposit outflow of

• A)$1.2 million.
• B)$1.1 million.
• C)$1 million.
• D)$900,000.

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Definitions:

Truman Doctrine

A United States foreign policy established in 1947 to counter Soviet geopolitical expansion during the Cold War through economic and military aid to countries resisting communism.

Containment

A foreign policy strategy aimed at stopping the expansion of an enemy or ideology, particularly communism during the Cold War.

Indian Removal Program

A government policy in the 1830s that forced Native American tribes to relocate from their ancestral lands in the southeastern United States to designated territory west of the Mississippi River.

American Expansionism

A policy or ideology aiming at expanding the territorial or economic influence of the United States across other nations and territories.