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

question 40

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 vault cash.

• A)one
• B)two
• C)nine
• D)ten

---

Definitions:

Tropical Rain Forests

Dense forests found in regions near the equator, characterized by high rainfall and biodiversity.

Internal Criticism

A method in historiography or textual analysis where the authenticity and credibility of a document or source is evaluated.

Valid

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.