How Does One Calculate the Amount of Bank's Actual Reserves

question 32

Multiple Choice

How does one calculate the amount of bank's actual reserves?

• A)Add its target and excess reserves.
• B)Subtract its target reserves from its excess reserves.
• C)Multiply its excess reserves by the reserve ratio.
• D)Multiply its demand deposits by the reserve ratio.
• E)Subtract its excess reserves from its target reserves.

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Definitions:

Bottom-up Processing

An approach to understanding information that starts with small, detailed data points and builds up to a comprehensive picture.

Higher Level

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The difference in image location of an object seen by the left and right eyes, resulting from the eyes' horizontal separation; the basis of stereoscopic depth perception.

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Tissues in the body that have the ability to contract, enabling movement of the body parts.