Table 21-4. -Refer to Table 21-4.Suppose the Bank Faces a Reserve Requirement

question 196

Multiple Choice

Table 21-4.

-Refer to Table 21-4.Suppose the bank faces a reserve requirement of 10 percent.Starting from the situation as depicted by the T-account,a customer deposits an additional $50,000 into his account at the bank.If the bank takes no other action it will

• A) have $65,000 in excess reserves.
• B) have $55,000 in excess reserves.
• C) need to raise an additional $5,000 of reserves to meet the reserve requirement ratio
• D) None of the above is correct.

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Definitions:

Tendon Tension

The force exerted by a tendon when it is stretched or pulled, contributing to the movement of bones and muscles.

Cutaneous Pressure

The sensation of mechanical force or pressure against the skin, sensed by mechanoreceptors within the skin's layers.

Pacinian Corpuscles

Specialized nerve endings in the skin and viscera that detect pressure and vibration, contributing to the sense of touch.

Temperature

A measure of the average kinetic energy of the particles in a sample of matter, expressed in units of degrees on specific scales such as Celsius or Fahrenheit.