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

question 148

Multiple Choice

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

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Definitions:

Blood Vessels

Hollow channels facilitating blood flow throughout the body, which include arteries, veins, and capillaries.

Excess Heat

Excess Heat refers to the additional heat energy in a system or environment beyond what is considered normal or comfortable, often requiring mechanisms for dissipation or control.

Oxytocin

A hormone and neurotransmitter involved in childbirth, lactation, and emotional bonding.

Positive Feedback

A process in which the end products of an action cause more of that action to occur in a feedback loop, amplifying the original action.