Suppose the Banking System Currently Has $400 Billion in Reserves

question 114

Multiple Choice

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?

• A)$5,000 billion
• B)$4,937.5 billion
• C)$5,062.5 billion
• D)$4,995 billion

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Definitions:

Aging

The process of becoming older, characterized by the gradual decline in physical and sometimes cognitive functions.

Prescription Drugs

Medications that are legally dispensed only with a healthcare provider's prescription, used to treat various medical conditions.

Misuse

Misuse is the incorrect, improper, or excessive use of something, often leading to negative outcomes or harm.

Preventive Approach

Strategic actions taken to avoid potential problems or diseases before they occur.