Suppose a Bank Has $100,000 in Checking Account Deposits with No

question 55

Multiple Choice

Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent.If the Federal Reserve raises the required reserve ratio to 12 percent,then the bank will now have excess reserves of

• A)$12,000.
• B)$0.
• C)-$2,000.
• D)-$12,000.

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Definitions:

Personal Freedom

The rights of individuals to act, speak, or think without hindrance or restraint, except in cases where actions harm others.

Memorial Day Massacre

A violent incident on May 30, 1937, where Chicago police shot and killed ten unarmed demonstrators during a steel strike.

UAW Sit-down Strikes

A form of labor protest used by the United Auto Workers in the 1930s, where workers occupied the workplace to prevent the production process, gaining significant victories for union recognition and better wages.

Organized Labor

Groups of workers who unite to negotiate collectively with employers over wages, benefits, working conditions, and other employment terms.