If the Reserve Requirement Was 5% and a Bank Customer

question 115

Multiple Choice

If the reserve requirement was 5% and a bank customer makes a deposit of $1,000, the initial result would be:

• A)​a $950 increase in required reserves and a $50 increase in excess reserves.
• B)​a $20,000 increase in required reserves and a $950 increase in excess reserves.
• C)​a $50 increase in required reserves and a $20,000 increase in excess reserves.
• D)​none of the above

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Definitions:

Sodium-Potassium Pumps

Membrane proteins that help maintain cellular homeostasis by actively transporting sodium out of cells and potassium into cells.

Multiple Sclerosis

An autoimmune disease that affects the brain and spinal cord, leading to demyelination, inflammation, and damage to nerve cells.

Tingling Sensations

A feeling of prickling, stinging, or numbness in the skin with no apparent long-term physical effect, often referred to as having one's skin "fall asleep."

Brain Tumor

An abnormal growth of cells within the brain or the central spinal canal, which can be malignant (cancerous) or benign (non-cancerous), leading to various neurological problems.