If the Desired Reserve Ratio Is 3 Percent and Deposits

question 206

Multiple Choice

If the desired reserve ratio is 3 percent and deposits totaled $575 billion, banks would hold

• A) $534.75 in reserves.
• B) $17.25 billion in excess reserves.
• C) $1,725 billion in currency.
• D) $17.25 billion in reserves.

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Definitions:

Statement Form

The form or structure of a statement or proposition in logic, usually presented in a symbolic language.

Particular

In logic, refers to propositions or statements that affirm or deny something about only some members of a class, as opposed to universality which concerns all members.

Negative

Expressing denial, disagreement, or the absence of certain characteristics or conditions.

Business Majors

College or university students specializing in fields of study related to business, such as finance, marketing, or management.