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

question 119

Multiple Choice

Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent.If the Federal Reserve lowers the required reserve ratio to 3 percent,then the bank will now have excess reserves of

• A)$0.
• B)$2,000.
• C)$3,000.
• D)$5,000.

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Definitions:

Modern Societies

Societies characterized by significant technological development, social structures, and cultural norms that distinguish them from earlier historical periods.

Respect for the Law

A societal principle prioritizing the observance and adherence to established legal standards and rules.

Power

The power to shape or determine the conduct of individuals or the direction of occurrences.

Control

The ability to shape or control the actions of individuals or the outcome of situations.