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:

Division Of Labor

The allocation of different tasks and responsibilities to specific individuals or groups in a society or organization to increase efficiency.

Collectivism

A cultural value or social outlook that emphasizes the importance of groups and community over individual achievements or desires.

Culture

The shared values, customs, social behaviors, institutions, and intellectual achievements of a particular society or group, shaping its members' worldview and lifestyle.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort and thus are motivated to reduce it by changing their attitudes, beliefs, or actions when they are inconsistent.