If a Bank Gets a $100 000 New Deposit,chooses to Lend

question 119

Multiple Choice

If a bank gets a $100 000 new deposit,chooses to lend out $85 000,and increases its excess reserves by $5000 at the same time,what is the desired reserve ratio?

• A)10 percent
• B)15 percent
• C)20 percent
• D)25 percent

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Definitions:

Vegetation

Plant life or total plant cover in an area, contributing to the habitat's ecosystem and providing resources for wildlife.

Correlated

When two or more variables are related in a way that changes in one variable mirror or are associated with changes in another.

Species Diversity

The variety of different species that exist within a specific ecological community or ecosystem.

Environmental Stress

Physical, chemical, and biological constraints on the productivity and survival of organisms, often leading to adaptive responses.