If at the End of the Business Day a Bank

question 177

Multiple Choice

If at the end of the business day a bank has $50,000 in excess reserves,and the required reserve ratio is 20 percent,the bank can maximize its profits if it

• A)keeps the excess reserves
• B)loans out $40,000
• C)loans $50,000 to another bank
• D)borrows $50,000 to remove the excess reserves
• E)keeps $10,000 and deposits $40,000 with the Fed

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Definitions:

Long-Haired

Characterized by having long fur or hair, often used to describe animals or humans with lengthy hair strands.

Epistasis

Polygenic inheritance, in which a trait is influenced by multiple genes.

Labrador Retrievers

A breed of dog known for its friendly nature, intelligence, and versatility in various roles such as assistance dogs and in search-and-rescue operations.

Alleles

Alternative forms of a gene that occur at the same locus on homologous chromosomes, contributing to genetic diversity.