If the Desired Reserve Ratio Is 10 Percent, How Much

question 88

Multiple Choice

If the desired reserve ratio is 10 percent, how much excess reserves does a bank acquire when a business deposits a $500 cheque drawn on another bank?

• A)$450
• B)$550
• C)$5000
• D)$500

---

Definitions:

Deviant

Behavior or actions that deviate from the societal norm, often viewed as unconventional or unacceptable.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Personally Distressing

Experiences or feelings that cause significant emotional discomfort to an individual.

Deviant

Behaviors or actions that differ significantly from accepted societal norms or standards.