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

question 401

Multiple Choice

Table 29-5.
-Refer to Table 29-5. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $60,000 into his account at the bank. If the bank takes no other action it will

• A)have $64,000 in excess reserves.
• B)have $4,000 in excess reserves.
• C)be in a position to make new loans equal to $6,000
• D)None of the above is correct.

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Definitions:

Chromatid

One of the two identical halves of a replicated chromosome, joined at the centromere, eventually pulled apart during cell division.

Centromere

The region of a chromosome to which the microtubules of the spindle attach, via the kinetochore, during cell division.

Chromatin

The complex of DNA and histone proteins that forms chromosomes within the nucleus of eukaryotic cells, regulating gene expression.

Membrane Potential

The voltage difference across a cell's membrane, crucial for the function of excitable cells like neurons and muscle cells.