The Vancouver Bank's Balance Statement Is as Follows

question 125

Multiple Choice

The Vancouver Bank's balance statement is as follows:
All figures are in billions.

-Refer to the above information and,assuming that desired reserve ratio is 10 percent,after a cheque for $20,000 is drawn and cleared against this bank,its excess reserve will be:

• A) $3,000
• B) $24,000
• C) $9,000
• D) $16,000

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Definitions:

Entry Barriers

Entry Barriers are obstacles that make it difficult for new entrants to enter an industry, protecting existing firms from competition.

Oligopoly

An oligopoly is a market structure dominated by a few large firms, leading to limited competition and possibly collaborative behavior to control prices and market share.

Increasing Returns To Scale

Long-run average total cost declines as output increases (also referred to as economies of scale).

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high start-up costs or strict regulations.