Suppose a Bank Has $1 Million in Deposits, a Reserve

question 194

Multiple Choice

Suppose a bank has $1 million in deposits, a reserve requirement of 20%, and bank reserves of $400,000. The bank has excess reserves of

• A) $50,000.
• B) $100,000.
• C) $200,000.
• D) $300,000.

---

Definitions:

Machine-Hour

A unit of measure representing the operation of a machine for one hour.

Unit Product Cost

The cost associated with producing a single unit of a product, encompassing materials, labor, and overhead.

Job K818

Specific reference to a job or project, indicating a unique identifier within a production or manufacturing setting.

Manufacturing Cost

The total cost incurred in the production of goods, including raw materials, labor, and overhead expenses.