Suppose That the Reserve Ratio Is 9 Percent and That

question 64

Multiple Choice

Suppose that the reserve ratio is 9 percent and that a bank has $2000 in deposits.What are its required reserves?

• A) $100
• B) $120
• C) $140
• D) $180

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Definitions:

Intangible Property

Refers to non-physical assets such as intellectual property, copyrights, and trademarks.

Physical Existence

The state of having a real, tangible presence in the physical world.

Private Property

Land or belongings owned by individuals or entities that are not the government, encompassing exclusive rights of use and disposal.

Warehouseman

A person or company involved in the business of storing goods for others in a warehouse for compensation.