Table 29-5. -Refer to Table 29-5. If the Bank Faces a Reserve

question 457

Multiple Choice

Table 29-5.
-Refer to Table 29-5. If the bank faces a reserve requirement of 8 percent, then the bank

• A)is in a position to make a new loan of $14,000.
• B)has fewer reserves than are required.
• C)has excess reserves of $16,400.
• D)None of the above is correct.

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Definitions:

Form

The structure, appearance, or configuration of something, especially as distinct from its substance or content.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Malaria

A disease caused by a plasmodium parasite, transmitted by the bite of infected mosquitoes.

Dewpoint

The temperature at which air must be cooled, at constant pressure and water vapor content, for it to reach saturation and produce dew.