If a Bank Has Excess Reserves of $15,000 and Demand

question 171

Multiple Choice

If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000,and if the reserve requirement is 20 percent,then the bank has total reserves of

• A)$11,000.
• B)$21,000.
• C)$31,000.
• D)$41,000.

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Definitions:

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Expenses that an organization incurs over a brief period, typically within one year, which can impact immediate financial health.

Personnel Policies

Guidelines and rules established by an organization to manage and direct its employees.

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