There Are Zero Excess Reserves at All Banks and the Required

question 15

Multiple Choice

There are zero excess reserves at all banks and the required reserve ratio is 20 percent.If a check for $100,000 on Bank ABC is deposited in Bank XYZ,then excess reserves at Bank ABC equal ________ and excess reserves at Bank XYZ equal ________.

• A)-$20,000;+$80,000
• B)-$100,000;+$80,000
• C)-$80,000;+$100,000
• D)-$80,000;+$80,000

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Definitions:

Fluctuation

Variability or changes in a state, condition, or level, often seen in contexts like economics or physical measurements.

Need for Order

The intrinsic human desire for organization, structure, and predictability in one's environment and life.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Need for Achievement

A psychological drive that motivates individuals to accomplish goals and excel in their endeavors.