Assume That a Bank Initially Has No Excess Reserves

question 113

Multiple Choice

Assume that a bank initially has no excess reserves.If it receives $5,000 in cash from a depositor and the bank finds that it can safely lend out $4,500, the reserve requirement must be

• A)zero.
• B)10 percent.
• C)20 percent.
• D)25 percent.

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Definitions:

Perfect Pitch

The rare ability to identify or recreate a musical note without the need for an external reference.

Probable Origin

Refers to the most likely source or starting point of something, often used in discussions of disease emergence or the evolutionary beginnings of species.

Decibel (dB) Levels

A logarithmic unit of measurement that expresses the magnitude of a physical quantity (usually power or intensity) relative to a specified or implied reference level.

Hearing Damage

Impairment in hearing ability, which can be caused by exposure to loud noise, aging, disease, or genetic factors.