Suppose a Bank Has a Desired Reserve Requirement Ratio of 12

question 254

Multiple Choice

Suppose a bank has a desired reserve requirement ratio of 12 percent. If someone deposits $1,000 in the bank

• A) immediately after the deposit, excess reserves increase by $880.
• B) the bank can make loans of $1,000.
• C) the bank's desired reserves rise by $1,000.
• D) Both answers B and C are correct.

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Definitions:

Schizophrenia

A mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Generalized Anxiety

A mental health condition marked by chronic, excessive worry about various aspects of daily life, often accompanied by physical symptoms of anxiety.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Borderline Personality

A mental disorder characterized by unstable moods, behavior, and relationships.