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

question 169

Multiple Choice

If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 10 percent,then the bank has actual reserves of

• A)$14,000.
• B)$17,000.
• C)$22,000.
• D)$27,000.

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Definitions:

Variable on the Vertical Axis

Refers to the dependent variable in a graph or chart, plotted along the vertical (Y) axis, whose value depends on the independent variable.

Variable on the Horizontal Axis

In data representation, a quantity that is measured along the horizontal axis, usually independent in nature.

Slope

The measure of the steepness or angle of a line, indicating the rate at which it rises or falls.

Average Costs

This refers to the per-unit production cost, calculated by dividing total costs by the total quantity produced, indicating the efficiency of production.