If a Bank Has Excess Reserves of $10,000 and Demand

question 53

Multiple Choice

If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has actual reserves of

• A)$16,000.
• B)$20,000.
• C)$26,000.
• D)$36,000.

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Definitions:

IPO

Initial Public Offering, a process where a private company offers shares to the public for the first time to raise capital.

Environmental Factors

External elements including economic, political, social, technological, and ecological influences that can affect a business or its operations.

Financial Factors

Aspects related to money, finances, or fiscal conditions that influence decision-making or performance.

Internal Factors

Elements within an organization that influence its operation, such as company culture, employees, and internal processes.