Suppose That from a New Checkable Deposit,First National Bank Holds

question 123

Multiple Choice

Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,nine million dollars in excess reserves,and faces a required reserve ratio of ten percent. Given this information,we can say First National Bank has ________ million dollars on deposit with the Federal Reserve.

• A)one
• B)two
• C)eight
• D)ten

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Definitions:

Economic Hardship

A situation where an individual or community experiences financial stress, often due to unemployment, high living costs, or a decline in economic conditions.

Cash Crops

Agricultural crops grown primarily for sale to return a profit, such as tobacco, cotton, and sugar, rather than for personal use or sustenance.

Domestic Servants

Workers employed within a household to perform a variety of tasks and services like cooking, cleaning, and childcare, often without much legal protection or rights historically.

Aura of Authority

The perceived power or right of an individual or organization to lead and make decisions.