If a Bank Has $100,000 of Checkable Deposits,a Required Reserve

question 96

Multiple Choice

If a bank has $100,000 of checkable deposits,a required reserve ratio of 20 percent,and it holds $40,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A)$30,000.
• B)$25,000.
• C)$20,000.
• D)$10,000.

Identify the various defenses that can be used to avoid contract enforcement.

Understand the role of consent in contract formation and the impact of factors such as fraud, duress, and undue influence.

Understand the concept and implications of cultural relativism in ethical judgments.

Recognize the impact of high and low power distance on organizational cultures and employee beliefs.

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Natural Law

The philosophy proposing that certain rights or values are inherent by virtue of human nature and universally cognizable through human reason.

Market Value Ethics

Ethical considerations and guidelines regarding how goods and services are valued and exchanged in the market, emphasizing fairness, transparency, and honesty in business practices.

Michael Sandel

An American political philosopher and a professor at Harvard University, known for his writings and lectures on justice and moral philosophy.