If Excess Reserves Are $50,000,demand Deposits Are $1,000,000,and the Minimum

question 41

Multiple Choice

If excess reserves are $50,000,demand deposits are $1,000,000,and the minimum reserve requirement is 5 percent,then total reserves are:

• A) $1,000,000
• B) $100,000
• C) $50,000
• D) $2,500

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Definitions:

Artificially Induced

This describes a condition or reaction that is not naturally occurring but is created through human intervention or manipulation.

Naturally Induced

describes processes or responses initiated by natural factors or stimuli without human intervention.

Gamma Globulin

A class of globulins in blood plasma that includes most of the antibodies or immunoglobulins, playing a critical role in immune responses.

Inflammatory Response

A biological response to harmful stimuli, such as pathogens or damaged cells, characterized by redness, heat, swelling, and pain.