Suppose That a Bank Has $8,000 in Checkable Deposits and the Required

question 209

Multiple Choice

Suppose that a bank has $8,000 in checkable deposits and the required reserve ratio is 0.2.If actual reserves equal $3,000,then excess reserves equal

• A)$1,600
• B)$1,400
• C)$2,400
• D)$5,000
• E)zero

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Definitions:

Public Office

Positions of authority or responsibility in government that are held by individuals who have been elected or appointed to serve the public in some capacity.

Entrepreneurial Method

An approach to entrepreneurship that focuses on iterative learning and adaptation in the process of starting and growing a business.

Consistent Practice

The regular and repeated exercise of an activity or skill to improve proficiency and achieve mastery over time.

Family Enterprise

A business that is owned and managed by multiple family members, typically for more than one generation.