Suppose a Bank Has $1,500,000 in Deposits and the Desired

question 149

Multiple Choice

Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the excess reserves are equal to

• A) zero.
• B) $180,000.
• C) $120,000.
• D) $20,000.

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Definitions:

Criminal Justice

The system of practices and institutions aimed at upholding social control, deterring and mitigating crime, and sanctioning those who violate laws with criminal penalties and rehabilitation efforts.

Abuse Of Discretion

A failure to exercise reasonable judgment or fair decision-making by someone in a position of authority, often leading to unjust outcomes.

Law Enforcement

The system by which members of society are prevented from breaking the law, maintaining public order, and ensuring public safety through the application of legal codes.

Principle Of Fallibility

The principle that all human knowledge or interpretations are inherently fallible and subject to error.