Scenario 11-2. The Monetary Policy of Tazi Is Controlled by the Country's

question 115

Multiple Choice

Scenario 11-2.
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 11-2. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks?

• A) 5 percent, 8 percent
• B) 4 percent, 8 percent
• C) 4 percent, 5 percent
• D) None of the above is correct.

---

Definitions:

Deep

A descriptive term used in various contexts to indicate a considerable distance from the surface or edge, often related to the dimension of a feature.

Depth

The measurement from the top surface to the bottom in an object, often used to specify the extent of features such as holes or cuts.

Third Dimension

The third dimension adds depth to two-dimensional representations, enabling the portrayal of length, width, and height or depth, thus offering a more comprehensive visualization.

Separate Drawing

An individual drawing sheet that details a single part or component, used for clarity or to specify complex details, separate from the main assembly drawing.