A Small State Bank Currently Has Reserves Equal to $300,000

question 47

Multiple Choice

A small state bank currently has reserves equal to $300,000.If the state reserve requirement is 20%,but the bank currently maintains a 30% reserve,how much are the excess reserves the bank currently has?

• A) $200,000
• B) $100,000
• C) $300,000
• D) $500,000
• E) None of the above.

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Definitions:

Cross-Sectional Area

The total area within the boundary of a three-dimensional object when it is cut through perpendicularly to its longest axis.

Field Diameter

The length of the visible field observed through the microscope or another imaging device.

Total Magnification

The combined magnification achieved when using a microscope, determined by multiplying the objective lens magnification by the eyepiece lens magnification.

Economic Order Quantity

A calculation used to determine the most cost-effective quantity of stock to order, balancing ordering costs with holding costs.