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

question 53

Multiple Choice

Table 21-4.

-Refer to Table 21-4.If the bank faces a reserve requirement of 20 percent,then it

• A) has $10,000 of excess reserves.
• B) needs $10,000 more reserves to meet its reserve requirements.
• C) needs $5,000 more reserves to meet its reserve requirements.
• D) just meets its reserve requirement.

Delineate between the strengths and weaknesses of network analysis and social exchange theory.

Evaluate the relationship between exchange theory, rational choice theory, and network theory and their perspective towards social action.

Understand the fundamental principles of social exchange theory.

Explain the role of power dynamics in associations as per Peter Blau and George Homans.

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit to others, with the expectation of being paid back with interest.

Price-Earnings Ratio

The ratio for valuing a company that measures its current share price relative to its per-share earnings, widely used by investors to assess the market's valuation of a stock relative to its earnings performance.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business for a specified period.

Book Values

The value of an asset as recorded on the company’s balance sheet, calculated as the cost of the asset minus any depreciation, amortization, or impairment costs.