Use the Following to Answer Questions

question 401

Multiple Choice

Use the following to answer questions:
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%.Banks hold no excess reserves.A customer deposits $6000 in her chequable deposit.
-(Scenario: Holding Cash) Refer to Scenario: Holding Cash.Assume that after receiving the deposit,the bank lends out its excess reserves.When the loan is spent,_____ of the loan will be a chequable deposit and _____ will be held by the public as cash.

• A) $6000;$0
• B) $4800;$1200
• C) $2400;$2400
• D) $3000;$3000

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Definitions:

Organizational Subsystems

Divisions or units within an organization that have specific roles or functions, contributing to the overall system's efficiency.

Open-System Model

A conceptual framework used in business and organizational studies that views an entity as an open system interacting dynamically with its environment.

Shared Values

Fundamental beliefs or principles that are collectively agreed upon by members of an organization or community and guide their behavior.

Organization Culture

The shared values, beliefs, and norms that influence the way employees behave within an organization.