Suppose Banks Desire to Hold No Excess Reserves and That

question 17

Multiple Choice

Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 6 percent.If you deposit $8,000 into First Raven Bank,

• A)First Raven's required reserves increase by $480.
• B)First Raven will be able to lend out $7,520.
• C)First Raven's assets and liabilities both will increase by $8,000.
• D)All of the above are correct.

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Definitions:

Back-end Database

The part of a database system that stores the actual data and is accessed by the front-end applications, not directly by users.

Database Tables

Structured sets of data stored in a database, organized in rows and columns.

Queries

A request for data or information from a database.

Front-end Database

The part of a database system that interacts directly with the user, providing an interface to enter, query, and display data.