If a Bank Has $10 Million of Deposits,a Required Reserve

question 67

Multiple Choice

If a bank has $10 million of deposits,a required reserve ratio of 10 percent,and $2 million in reserves,then it does not have enough reserves to support a deposit outflow of

• A) $1.2 million.
• B) $1.1 million.
• C) $1 million.
• D) either A or B of the above.

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Definitions:

Urinary Stream

The flow of urine during urination.

Zygote

refers to the initial cell formed when a sperm cell fertilizes an egg, marking the beginning of a new organism.

Fertilization

Impregnation of the ovum by the sperm; conception.

Ovulation

The phase of the menstrual cycle during which a mature egg is released from the ovary into the fallopian tube for potential fertilization.