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A Bank Has $200 of Reserves and $4,000 of Deposits

question 194

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A bank has $200 of reserves and $4,000 of deposits.It is just meeting its desired reserves and has no excess reserves.Thus the desired reserve ratio is


Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.

Flaws

Imperfections, mistakes, or weaknesses that may detract from the overall value or functionality of something.

Mistakes

Mistakes are actions or decisions that are incorrect or unwise, often resulting from a lack of knowledge or judgment.

DSM-5 Criteria

The diagnostic criteria for mental disorders listed in the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, used by healthcare professionals as a guide for diagnosing mental conditions.

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