If a Bank Has $10 Million of Checkable Deposits,a Required

question 88

Multiple Choice

If a bank has $10 million of checkable deposits,a required reserve ratio of 10 percent,and it holds $2 million in reserves,then it will not have enough reserves to support a deposit outflow of

• A)$1.2 million.
• B)$1.1 million.
• C)$1 million.
• D)$900,000.

---

Definitions:

Long-term Memory

A type of memory capable of storing information for a prolonged period, ranging from days to a lifetime.

Short-term Memory

A thinking apparatus of limited scope, aimed at briefly sustaining information pending processing.

Longitudinal Study

A research method that involves observing the same subjects over a period of time, often years or decades.

Short-term Memory

A component of memory where small amounts of information can be stored for a short duration, typically seconds to minutes.