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

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Definitions:

Organizational Identification

Organizational identification is the sense of belonging that individuals feel towards their organization, influencing their alignment with the organization's values, goals, and actions.

Informal Networks

Social networks within an organization that transcend formal structures, facilitating the flow of information and influence.

Structural Integration

A concept in organization development focusing on aligning the structure of an organization with its objectives.

Cultural Differences

Variations in the norms, values, beliefs, and practices among people from different backgrounds or societies.