If a Bank Has Deposits of $100,000, Cash in Its

question 131

Multiple Choice

If a bank has deposits of $100,000, cash in its vault of $10,000, and $15,000 on deposit at the Federal Reserve and if the required reserve ratio is 20%, then the bank:

• A)has no excess reserves.
• B)has excess reserves of $5,000.
• C)has insufficient reserves to meet requirements.
• D)has an insufficient deposit to loan ratio.

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Definitions:

Topic Intimacy

The level of personal significance and emotional depth discussed within a conversation or shared between individuals.

Personal Space

The physical and psychological area an individual considers their own, preferring it to be free from intrusion by others.

Third Places

Public places that serve as informal gathering spots, distinct from one's home (first place) and work (second place), important for community building.

Public Places

Areas that are open and accessible to all members of a community, including parks, streets, and public buildings.