Table 16-4. -Refer to Table 16-4. Suppose the Bank Faces a Reserve

question 104

Multiple Choice

Table 16-4.
-Refer to Table 16-4. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $50,000 into his account at the bank. If the bank takes no other action it will

• A)have $65,000 in excess reserves.
• B)have $55,000 in excess reserves.
• C)need to raise an additional $5,000 of reserves to meet the reserve requirement ratio
• D)None of the above is correct.

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Definitions:

Variability

The degree to which data points in a statistical distribution or dataset differ from each other and from the overall mean.

Stereotype Threat

The risk of confirming negative stereotypes about one's group, which can impair performance and reinforce discriminatory beliefs.

Heritability Estimates

Quantitative measures used in genetics to determine what proportion of variation in a particular trait within a population is due to genetic differences among individuals.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.