If a Bank Has Excess Reserves of $4,000 and Demand

question 198

Multiple Choice

If a bank has excess reserves of $4,000 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)$19,000.
• C)$24,000.
• D)$29,000.

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Definitions:

Claims

Statements asserting something to be true, often requiring supporting evidence or justification in various contexts, like insurance or argumentation.

Requesting Adjustments

Asking for changes or modifications to be made to a product, service, or arrangement to better meet one's needs or expectations.

Communicating

The process by which individuals convey information, ideas, or feelings to one another through speech, writing, or other forms of expression.

Claim Response

The reaction or reply to a statement or assertion, particularly in the context of addressing a complaint or issue.