If a Bank Has Excess Reserves of $7,000 and Demand

question 89

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 15 percent,then the bank has actual reserves of

• A)$17,000.
• B)$22,000.
• C)$27,000.
• D)$29,000.

Recognize the impact of appearance and credibility in persuasion.

Identify and explain social norms and roles in specific contexts.

Comprehend the basic concepts of prejudice, discrimination, and stereotype threat.

Recognize the effects of group dynamics on decision-making and individual behavior.

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.

Common Stock

A type of security that represents ownership in a corporation, entitling the shareholder to a proportion of the corporation's assets and profits.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Net Income

The total revenue of a company minus its expenses, taxes, and the cost of goods sold, indicating the company's profit.