The Manager of the Bank Where You Work Tells You

question 64

Multiple Choice

The manager of the bank where you work tells you that the bank has $400 million in deposits and $340 million dollars in loans.The Fed then raises the reserve requirement from 5 percent to 10 percent.Assuming everything else stays the same,how much is the bank holding in excess reserves after the increase in the reserve requirement?

• A)$0
• B)$20 million
• C)$40 million
• D)$60 million

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Definitions:

Marketing Program

A coordinated, comprehensive plan that outlines all marketing efforts and strategies to promote a product, service, or brand.

Strategic Marketing Process

An approach to planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Line Managers

Individuals who are directly responsible for overseeing and managing employees and operations to ensure the production of goods and services.

Program Champion

A person who is willing and able to “cut the red tape” to move the program forward.