The Manager of the Bank Where You Work Tells You

question 64

Multiple Choice

The manager of the bank where you work tells you that the bank has $400 million in deposits and $340 million dollars in loans.The Fed then raises the reserve requirement from 5 percent to 10 percent.Assuming everything else stays the same,how much is the bank holding in excess reserves after the increase in the reserve requirement?

• A)$0
• B)$20 million
• C)$40 million
• D)$60 million

---

Definitions:

Meditation

A practice where an individual uses a technique – such as mindfulness, or focusing the mind on a particular object, thought, or activity – to train attention and awareness, and achieve a mentally clear and emotionally calm state.

Attentional Processing

The series of cognitive operations that prioritize and allocate resources to specific stimuli or tasks for processing.

Preserving Brain Function

Activities or interventions aimed at maintaining or improving cognitive abilities and neurological health.

Experiencing Sadness

The emotional state or feeling characterized by feelings of disadvantage, loss, despair, grief, helplessness, disappointment, and sorrow.