The Manager of the Bank Where You Work Tells You

question 62

Multiple Choice

The manager of the bank where you work tells you that your bank has $10 million in excess reserves.She also tells you that the bank has $400 million in deposits and $375 million dollars in loans.Given this information you find that the reserve requirement must be

• A)10/400.
• B)25/400.
• C)35/400.
• D)15/400.

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Definitions:

Maximize Utility

The concept in economics that individuals or firms seek to achieve the highest level of satisfaction or benefit from their choices given their resources.

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit; it is critical for determining the optimal production level.

Theft and Burglary

Crimes involving the unauthorized taking of property; theft is the broader term, while burglary specifically refers to entering a building unlawfully with intent to commit theft or a felony.

Calorie Counts

Calorie counts refer to the measurement of energy in food and beverages, indicating the amount of energy that can be obtained through consumption.