Suppose the Desired Reserve Ratio Is 10 Percent

question 369

Multiple Choice

Suppose the desired reserve ratio is 10 percent.If the Commerce Bank has total deposits of $20,000,total assets of $10,000,and actual reserves of $8000,the amount of excess reserves is

• A)$2,000.
• B)$6,000.
• C)$800.
• D)$100.
• E)$0.

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Definitions:

Altruistic Behavior

Occurs whenever a helping individual behaves in a way that benefits another individual at a cost to its own fitness.

Hamilton

A city in Ontario, Canada, known for its industrial heritage, or referring to William D. Hamilton, a biologist who made significant contributions to the theory of evolution.

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A fatty material that encases the axons of some neurons, serving as an insulating layer that enhances the speed and efficiency of electrical signal transmission in the nervous system.