If the Reserve Requirement Is 15 Percent and a Customer

question 36

Multiple Choice

If the reserve requirement is 15 percent and a customer makes a new cash deposit of $50,000, how much new excess reserves are created?

• A)​$7,500
• B)​$33,000
• C)​$67,500
• D)​$42,500

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Definitions:

Glycosuria

The presence of glucose in the urine, typically an indicator of high blood sugar levels.

Sugar

A sweet-tasting, soluble carbohydrate, present in many plants, primarily sugar cane and sugar beets, and used extensively as a sweetener and preservative.

Urine

A liquid by-product of metabolism in humans and many animals, excreted by the kidneys through the urethra.

Blood

A vital fluid in the body that delivers necessary substances like nutrients and oxygen to the cells and transports metabolic waste products away.