Suppose the ABC Bank Has Excess Reserves of $4,000 and Outstanding

question 48

Multiple Choice

Suppose the ABC bank has excess reserves of $4,000 and outstanding demand deposits of $80,000.If the desired reserve ratio is 25 percent, what is the size of the bank's actual cash reserves?

• A)$16,000
• B)$84,000
• C)$24,000
• D)$20,000

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Definitions:

Cerebrum

The most sizable region of the brain, tasked with controlling voluntary movement, visual perception, speaking, taste sensations, auditory experiences, thinking, and memory retention.

Sulci

Grooves or furrows on the surface of the brain, separating adjacent gyri.

Gyri

The ridges or convolutions found on the surface of the brain.

Cranial Nerves

Peripheral nerves that originate from the brain.