If a Bank Has a Required Reserve Ratio of 10

question 116

Multiple Choice

If a bank has a required reserve ratio of 10% and has required reserves of $100 million,how much does the bank hold in deposits?

• A) $10 million
• B) $110 million
• C) $1 billion
• D) $1.5 billion
• E) There is not enough information to solve this problem.

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Definitions:

Cumulative Effect

The total impact resulting from a series of changes or interventions over time, often considered in assessments of long-term outcomes.

Research Designs

Plans or frameworks for the collection, measurement, and analysis of data tailored to exploring particular research questions or hypotheses.

MAXMINCON Principle

A methodological principle designed to maximize applicable information, minimize cost, and control for unwanted variation in research or operational settings.

Overreliance

Excessive dependence on something or someone, often to the point where it becomes detrimental.