Suppose a Bank Has $100,000 in Checking Account Deposits with No

question 55

Multiple Choice

Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent.If the Federal Reserve raises the required reserve ratio to 12 percent,then the bank will now have excess reserves of

• A)$12,000.
• B)$0.
• C)-$2,000.
• D)-$12,000.

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Definitions:

Emotionally Unstable

A term describing individuals who experience rapid, intense emotional changes that are unpredictable and can affect their behavior.

Expressing Anger

The act of recognizing and communicating feelings of anger in a healthy and constructive manner.

Temperament

The innate or naturally occurring patterns of personal behavior, mood, and emotional responses.

Predisposition

An inclination or tendency to behave in a certain way, often influenced by genetic or environmental factors.