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

question 61

Multiple Choice

Suppose that from a new checkable deposit,First National Bank holds eight million dollars on deposit with the Federal Reserve,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 in required reserves.

• A)one
• B)two
• C)nine
• D)ten

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Definitions:

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.

Utilities

Services such as water, electricity, gas, and sewer services provided to consumers and businesses.

Allocate

The process of assigning or distributing resources or amounts to various accounts or periods.

Square Footage

The measurement of area, especially used in reference to the size of a building or room, calculated in square feet.