The FUN Bank Has No Excess Reserves When a New

question 156

Multiple Choice

The FUN Bank has no excess reserves when a new deposit of $20,000 is made.The desired reserve ratio is 5 percent.After the deposit,but before making any loans,how much does The FUN Bank have in excess reserves?

• A)$1,000
• B)$20,000
• C)$9,000
• D)$19,000
• E)$21,000

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Definitions:

Organization Design

The process of structuring and arranging the components of a company or organization to achieve its objectives efficiently and effectively.

Traditional Forms

Conventional or long-established methods, practices, or art forms that are passed down through generations.

Evolution Circumstances

Factors or conditions that influence the adaptive changes and development of organisms, systems, or processes over time.

Network Design

The planning and structuring of a network, including the selection of hardware and software to meet the requirements and objectives of an organization.