Table 10-2 -Refer to the Table 10-2.If the Reserve Requirement Is 12

question 103

Multiple Choice

Table 10-2
-Refer to the Table 10-2.If the reserve requirement is 12 percent,what is the state of this bank?

• A) It can make a new loan of $17,500.
• B) It has less reserves than required.
• C) It has excess reserves of less than $5000.
• D) It has excess reserves of more than $5000.

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Definitions:

Acronym Method

A mnemonic device using the initial letters of words in a phrase or series of words to form a name or term, aiding in memory recall.

Functional Amnesia

A psychological disorder characterized by the sudden inability to recall important personal information, typically following severe stress or trauma, which cannot be explained by ordinary forgetfulness.

Anterograde Amnesia

The inability to form new memories following the event that caused the amnesia, even though the ability to recall past events may remain intact.

Organic Amnesia

A form of amnesia caused by brain injury or disease, affecting memory retrieval and storage.