Suppose That a Bank Has $100 Million in Checkable Deposits

question 30

Multiple Choice

Suppose that a bank has $100 million in checkable deposits and the required reserve ratio is 0.1.Required reserves are

• A)$1 million
• B)$5 million
• C)$10 million
• D)$50 million
• E)$100 million

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Definitions:

Stench

A strong and unpleasant smell.

Smell

The sensory perception of odors or scents by organisms, facilitated through the olfactory system.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, suggesting a resemblance.

Predicate

The part of a sentence or proposition that states something about the subject, often describing an action or characteristic.