Suppose That the First National Bank Acquires $500,000 in New

question 26

Multiple Choice

Suppose that the First National Bank acquires $500,000 in new deposits and the required reserve ratio is 12 percent.Which of the following is true?

• A)Required reserves on the new deposits are $12,000.
• B)Excess reserves on the new deposits are $500,000.
• C)Required reserves on the new deposits are $60,000.
• D)Excess reserves on the new deposits are $12,000.
• E)Total reserves on the new deposits are $440,000.

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Definitions:

Boycott

A collective and intentional act of abstaining from using, buying, or dealing with an organization as an expression of protest.

Confounding Variable

A variable that influences both the dependent and independent variables, causing a spurious association.

Blocking

The act of preventing access, movement, or function by placing an obstruction or obstacle.

Random Assignment

A method used in experiments to assign participants to different groups using randomization, ensuring that each participant has an equal chance of being placed in any group.