If a Bank Has Excess Reserves of $15,000 and Demand

question 171

Multiple Choice

If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has total reserves of

• A)$11,000.
• B)$21,000.
• C)$31,000.
• D)$41,000.

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Definitions:

Outsourced

The practice of hiring a third party to perform services, handle operations or provide goods that are either difficult to manage internally or outside of the business's core competencies.

Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress and frustration, often related to work.

Stressors

Stressors are external pressures or events that can cause stress, affecting one's mental and physical well-being.

Fight-or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival, preparing the body to either confront or flee the situation.