Suppose That a Bank Has $6,000 in Checkable Deposits and the Required

question 51

Multiple Choice

Suppose that a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2.If the bank wishes to hold no excess reserves,its actual reserves will be

• A)$4,000
• B)$1,200
• C)$3,000
• D)less than $1,000
• E)$4,800

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Definitions:

Indifference Curve

A graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent between the two combinations.

Consumption Bundle

A specific mix of goods and services that a consumer chooses to consume, reflecting the consumer's preferences and budget constraints.

Horizontal Axis

The x-axis in a graph, generally representing the independent variable in data representation or analysis.

Perfect Complements

Goods that are consumed together in fixed proportions because their use together enhances their combined utility.