Bank a Has Checkable Deposits of $900,000 and Total Reserves

question 149

Multiple Choice

Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 8 percent,the bank has excess reserves of

• A) $40,000.
• B) $72,000.
• C) $13,440.
• D) $4,000.

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Definitions:

Ashanti and Dahomey

African kingdoms known for their powerful militaristic and rich cultural histories; the Ashanti in what is now Ghana and Dahomey, now known as Benin.

African States

Refers to the countries on the African continent, each with its own distinct cultures, languages, and political structures.

Race

A social construct used to categorize humans into large and distinct populations based on various factors such as ancestry, physical appearance, and cultural history.