If a Bank Has $1 Million of Deposits,a Required Reserve

question 96

Multiple Choice

If a bank has $1 million of deposits,a required reserve ratio of 20 percent,and $300,000 in reserves,it need not rearrange its balance sheet if there is a deposit outflow of

• A) $50,000.
• B) $75,000.
• C) $150,000.
• D) either A or B of the above.

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Definitions:

Genetic Uniformity

The state of having a population where all individuals have very similar genetic makeup, reducing genetic diversity.

Farming

The practice of cultivating plants and livestock to produce food, fiber, medicinal plants, and other products to sustain and enhance human life.

Diseases

Illnesses or medical conditions that impact the body or mind.

Diffusion

The spread of cultural items such as ideas, styles, religions, technologies, languages among people.