Scenario 21-2. The Monetary Policy of Tazi Is Controlled by the Country's

question 413

Multiple Choice

Scenario 21-2.
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi.The local unit of currency is the taz.Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves,75 million tazes of excess reserves,have issued 7,500 million tazes of deposits,and hold 225 million tazes of Tazian Treasury bonds.Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 21-2.Assume that banks desire to continue holding the same ratio of excess reserves to deposits.What is the reserve requirement and the reserve ratio for Tazian Banks?

• A) 5 percent,8 percent
• B) 4 percent,8 percent
• C) 4 percent,5 percent
• D) None of the above is correct.

---

Definitions:

Chevy Trucks

A brand and line of trucks and pickups manufactured by Chevrolet, known for their durability, performance, and utility.

Rebate

A partial refund to someone who has paid too much for tax, rent, or a utility, or as a promotion by manufacturers and retailers to encourage the purchase of a product.

Service Provider

A company or individual that offers services to others in exchange for payment.

Loyalty Program

A marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program by offering rewards, discounts, or other incentives.