If the Reserve Requirement Was 15% and a Bank Customer

question 47

Multiple Choice

If the reserve requirement was 15% and a bank customer makes a deposit of $500, the initial result would be:

• A)a $75 increase in required reserves and a $425 increase in excess reserves.
• B)a $425 increase in required reserves and a $75 increase in excess reserves.
• C)a $75 increase in required reserves and a $3,333 increase in excess reserves.
• D)a $3,333 increase in required reserves and a $425 increase in excess reserves.
• E)a $3,333 increase in required reserves and zero increase in excess reserves.

Identify and analyze common fallacies in reasoning and interpretation in business contexts.

Recognize and apply guidelines for minimizing human errors in business report writing.

Develop concise and precise problem and purpose statements for business reports.

Comprehend the sequential steps involved in the report writing process following problem identification.

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Definitions:

Repurchased

Items or securities bought back by the seller or issuer from the buyer.

Assessed Values

Assessed values are the valuation of property, usually by a public tax assessor, for the purpose of determining property taxes.

Mill Rate

The amount of tax payable per dollar of the assessed value of a property.

Current Assessment

An evaluation or estimation of the present status, value, or condition of something.