If a Bank That Desires to Hold No Excess Reserves

question 203

Multiple Choice

If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10 percent receives a deposit of $400 it has a

• A)$400 increase in excess reserves and no increase in required reserves.
• B)$400 increase in required reserves and no increase in excess reserves.
• C)$360 increase in excess reserves and a $40 increase in required reserves.
• D)$40 increase in excess reserves and a $360 increase in required reserves.

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Definitions:

Low Discrepancy

Refers to a small gap or difference between two states or conditions, often used in psychology and marketing.

Emotional Appeals

Persuasive techniques that attempt to affect the audience's emotions in order to gain their support or change their opinion.

Rational Appeals

A method of persuasion that uses logical arguments and factual evidence to convince others.

Emotional Appeals

A persuasive technique that targets the emotions of the audience to create a connection or elicit a response.