If a Bank That Desires to Hold No Excess Reserves

question 65

Multiple Choice

If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 15 percent receives a deposit of $600,it has a

• A)$600 increase in excess reserves and no increase in required reserves.
• B)$600 increase in required reserves and no increase in excess reserves.
• C)$510 increase in excess reserves and a $90 increase in required reserves.
• D)$90 increase in excess reserves and a $510 increase in required reserves.

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The action of speaking or acting on behalf of someone or the state of being so represented, particularly in a legislative or political context.

Minorities

Groups in a population that are smaller in number and often have different ethnic, racial, religious, or cultural characteristics from the majority of the population.

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The bicameral legislative body of the federal government of the United States, consisting of the House of Representatives and the Senate.