If the Required Reserve Ratio Is 10 Percent and a Bank

question 141

Multiple Choice

If the required reserve ratio is 10 percent and a bank receives a new deposit for $100,000,then the:

• A)bank must keep $5,000 in excess reserves.
• B)bank's required reserves increase by $45,000.
• C)bank's liabilities increase by $100,000.
• D)bank can increase its loans by up to $50,000.
• E)bank can increase its loans by up to $400,000.

Understand the importance of congruence in self-concept and ideal self in therapy.

Know how to classify disorders using the DSM-IV, including understanding its axes.

Recognize the complexity and comorbidity of psychiatric diagnoses.

Understand the predominant views and influences on abnormal behavior in Western cultures.

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Definitions:

Interest Revenue

Earnings received from investments in interest-bearing assets like loans, bonds, and savings accounts.

Notes Receivable

Notes receivable are written promises for payments to be received, including principal and possibly interest, recognized as assets on a company's balance sheet.

Promissory Note

A financial instrument that contains a written promise to pay a specified sum of money to another party at a determined future date or on demand.

Interest Revenue

Income earned from investments, such as savings accounts, bonds, or loans, calculated as a percentage of the principal sum.