If a Bank's Desired Reserve-Deposit Ratio Is 33% and It

question 8

Multiple Choice

If a bank's desired reserve-deposit ratio is 33% and it has deposit liabilities of $100 million and reserves of $50 million,it

• A) has too few reserves and will reduce its lending.
• B) has excess reserves and will increase its lending.
• C) has the correct amount of reserves and outstanding loans.
• D) should increase the amount of its reserves.
• E) should decrease the amount of its reserves.

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Definitions:

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.

Abilities

Natural or acquired skills and talents that enable individuals to achieve tasks or solve problems.

Reinforcers

Stimuli that increase the probability of a behavior being repeated.

Projective Test

A type of personality test in which the individual offers responses to ambiguous scenes, words, or images, revealing hidden emotions and internal conflicts.