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.

---

Definitions:

Communication Deficits

A lack of ability or difficulty in expressing or receiving information effectively.

Self-care Deficit

A situation in which an individual is unable to perform essential self-care activities due to physical, mental, or emotional impairments.

Moderate Stage Alzheimer's

A middle phase in Alzheimer's disease where individuals may experience greater memory loss and cognitive difficulties.

Antianxiety Medication

Pharmaceuticals prescribed to alleviate symptoms of anxiety by affecting certain chemicals in the brain.