If Actual Cash Reserves in the Banking System Are $40,000

question 149

Multiple Choice

If actual cash reserves in the banking system are $40,000, excess reserves are $10,000, and demand deposits are $240,000, then the desired reserve ratio:

• A)is 10 percent.
• B)is 12.5 percent.
• C)is 20 percent.
• D)cannot be determined from this information.

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Definitions:

Reliability

The extent to which a test or other measuring instrument yields consistent results.

Self-report

A method of gathering data in which individuals provide information about themselves, often used in surveys and questionnaires.

Selye's Theory

A concept introduced by Hans Selye that defines stress as a nonspecific response of the body to any demand placed upon it, highlighting stages like alarm, resistance, and exhaustion.

Stress

A physical or emotional response to demands or pressures, which can affect mental and physical well-being.