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.

---

Definitions:

Information Campaigns

Efforts to inform or influence public opinion through the dissemination of specific information, often used in political or marketing contexts.

Interest Groups

Organizations that seek to influence public policy based on shared interests or concerns.

Tactics

The strategies or methods employed to achieve a specific goal or outcome, often within political, military, or business contexts.

Interest Groups

Organizations or groups that, based on one or more shared concerns, attempt to influence public policy in its favor typically without seeking electoral participation.