If the Reserve Ratio Is 25 Percent, What Level of Excess

question 270

Multiple Choice

If the reserve ratio is 25 percent, what level of excess reserves does a bank acquire when a customer deposits a $12,000 check drawn on another bank?

• A) $3,000
• B) $6,000
• C) $9,000
• D) $12,000

---

Definitions:

Pincer Grasp

A developmental milestone in infants, involving the coordination of the index finger and thumb to grasp small objects.

Cognitive Development

The process related to the growth and change in intellectual capabilities such as thinking, reasoning, and problem-solving across the lifespan.

Hearing Loss

A reduction in the ability to hear sounds, ranging from mild difficulties to total deafness.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present, involving complex thought processes such as analysis and synthesis.