Table 29-4. The First Bank of Wahooton

question 2

Multiple Choice

Table 29-4.
The First Bank of Wahooton

-Refer to Table 29-4.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
• D) None of the above is correct.

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Definitions:

Groupthink Tendency

A psychological phenomenon where the desire for consensus within a group leads to an irrational or dysfunctional decision-making outcome.

Team Building

The activities and strategies used to enhance social relations, define roles, and improve the performance and cohesion of team members.

Formal Retreat

A strategic decision by a company to withdraw from certain markets, products, or services as a conscious business choice.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental changes.