Refer to the Table Above

question 106

Multiple Choice

Refer to the table above. If a bank has checkable deposits of $45 million and reserves of $2 million, then its excess reserves are:

• A) $0.35 million
• B) $0.65 million
• C) $1.35 million
• D) $1.65 million

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Definitions:

Multilateral Approach

A multilateral approach in diplomacy or trade involves the participation of more than two countries, organizations, or parties to work on a specific issue or within a treaty framework.

Unilateral Approach

An action or policy decision made and implemented by a single governing body, organization, or individual without cooperation or agreement from others.

Free Trade

A financial strategy that permits the trade of goods across borders with few governmental limitations or duties.

Protection-As-A-Bargaining-Chip

A strategic use of trade barriers or policies by a country to gain concessions or favorable terms from other countries.