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

question 178

Multiple Choice

Table 16-4.
-Refer to Table 16-4. If the bank faces a reserve requirement of 20 percent, then it

• A)has $10,000 of excess reserves.
• B)needs $10,000 more reserves to meet its reserve requirements.
• C)needs $5,000 more reserves to meet its reserve requirements.
• D)just meets its reserve requirement.

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Definitions:

Supply And Demand

Fundamental economic model describing how the availability of a product (supply) and the desire for that product (demand) determine its price.

Employees

Individuals who are hired by an organization to perform specific duties in exchange for compensation.

Human Resource Planning

The process undertaken by an organization to ensure the right number and types of employees are available to meet current and future needs.

Strategic

Pertaining to the identification and prioritization of long-term or overall aims and interests and the means of achieving them.