If a Bank Has Excess Reserves of $4,000 and Demand

question 198

Multiple Choice

If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000,and if the reserve requirement is 15 percent,then the bank has actual reserves of

• A)$17,000.
• B)$19,000.
• C)$24,000.
• D)$29,000.

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Definitions:

Deflections

Movements or shifts off a predetermined path or direction, often used in physical and engineering contexts.

SA Node

The sinoatrial node, a natural pacemaker of the heart that controls heartbeat rhythm.

Electrical Impulses

Quick bursts of electricity that are used by nerves to communicate within the body, especially in the nervous system.

Transmission

The process or mechanism by which something is conveyed or transferred from one place, person, or thing to another, often used in reference to diseases or information.