Suppose That from a New Checkable Deposit,First National Bank Holds

question 199

Multiple Choice

Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,eight million dollars on deposit with the Federal Reserve,and one million dollars in required reserves. Given this information,we can say First National Bank faces a required reserve ratio of ________ percent.

• A)ten
• B)twenty
• C)eighty
• D)ninety

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Definitions:

Pure Competition

A market structure characterized by an infinite number of small sellers producing homogenous products, ensuring no single seller influences market price.

Market Share

The segment of a market held by a certain company or product, usually described in terms of a percentage of total market sales.

Amazon

Amazon is a global technology giant, primarily known for its e-commerce platform, but also involved in cloud computing, digital streaming, and artificial intelligence.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost.