If a Bank Has Deposits Worth $800, 000, Total Reserves

question 24

Multiple Choice

If a bank has deposits worth $800, 000, total reserves worth $900, 000, and the reserve ratio of 0.20, what is the value of excess reserves?

• A)$620, 000
• B)$1, 000, 000
• C)$1, 160, 000
• D)$740, 000
• E)$160, 000

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Definitions:

Maintenance Rehearsal

Practice of saying some information to be remembered over and over in one’s head in order to maintain it in short-term memory.

Repeating Items

The act of presenting the same items or information multiple times to reinforce memory or learning.

Eyewitness Testimony

Evidence provided by individuals who were present during an event, often used in court, which can be highly influential but sometimes unreliable due to memory inaccuracies.

False Positive

An error in data reporting in which a test result improperly indicates presence of a condition (such as a disease) when it is not actually present.