If a Bank Has Deposits of $250 Million, Reserves That

question 2

Multiple Choice

If a bank has deposits of $250 million, reserves that total $30 million and has a required reserve rate of 10 percent:

• A)The bank is short of required reserves
• B)The bank has excess reserves of $27.5 million
• C)The bank has excess reserves of $5 million
• D)The bank has excess reserves of $3 million

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Definitions:

At Most One

Indicates a restriction or condition where the maximum number of occurrences or instances is one.

Standard Deviation

A statistical measure of the dispersion or variability of a set of numbers, indicating the average distance from the mean.

Montana Highways

Refers to the network of state and interstate highways that crisscross the state of Montana, serving as important transportation routes.

Speed Limit

A legally determined maximum speed at which vehicles may travel on a particular road or area.