When $1 Million Is Deposited at a Bank,the Required Reserve

question 37

Multiple Choice

When $1 million is deposited at a bank,the required reserve ratio is 20 percent,and the bank chooses not to hold any excess reserves but instead makes loans,then in the bank's final balance sheet,

• A) the assets at the bank increase by $800,000.
• B) the liabilities of the bank increase by $1,000,000.
• C) the liabilities of the bank increase by $800,000.
• D) reserves increase by $160,000.

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Definitions:

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The process of systematically examining external and internal environments to identify opportunities, threats, trends, and strategic uncertainties.

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