If the Reserve Requirement Was 15% and a Bank Customer

question 190

Multiple Choice

If the reserve requirement was 15% and a bank customer makes a deposit of $500, the initial result would be:

• A)​a $75 increase in required reserves and a $425 increase in excess reserves.
• B)​a $425 increase in required reserves and a $75 increase in excess reserves.
• C)​a $75 increase in required reserves and a $3,333 increase in excess reserves.
• D)​a $3,333 increase in required reserves and a $425 increase in excess reserves.

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Definitions:

Meeting Minutes

A written record of the main points and decisions made during a meeting.

Board of Directors

A group of individuals elected by the shareholders of a company to oversee and make decisions on behalf of the organization.

Accounting Information

Refers to data related to the financial transactions and status of an organization, useful for decision-making purposes.

Banking Section

A part of financial management systems or software where users can link, view, and manage their bank and credit card transactions.