Initially a Bank Has a Minimum Reserve Requirement of 15

question 64

Multiple Choice

Initially a bank has a minimum reserve requirement of 15 percent and no excess reserves.If $200,000 is deposited in the bank,then ceteris paribus:

• A) The bank can increase its loans by $30,000.
• B) The bank can increase its loans by $230,000.
• C) Excess reserves will increase by $170,000.
• D) Required reserves will increase by $200,000.

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Definitions:

Binocular Cue

A visual information cue that requires both eyes to provide depth perception or distance information.

Disparity

A great difference or inequality between things or people.

Texture Gradients

The visual cue based on changes in pattern that provide information on an object's depth and distance.

Binocular Disparity

The slight difference in visual perspective seen by each eye, contributing to depth perception and three-dimensional vision.