If Over the First 12 Days of the Current Reserve

question 35

Multiple Choice

If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37 million, what does the bank need to hold as reserves over the last two days to meet the minimum reserve?

• A)$33.92 million.
• B)$41.23 million.
• C)$51.19 million.
• D)$47.23 million.
• E)$46.05 million.

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Definitions:

Wage Rate

The amount of compensation paid to employees for a unit of work or time, often expressed as an hourly rate.

Marginal Revenue Product

The additional revenue generated by one more unit of input, such as labor or capital, in the production process.

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Profit-Maximizing Firm

A business entity's objective of adjusting production and sales to achieve the highest possible profit levels.