Suppose a Bank Has $100,000 in Checking Account Deposits with No

question 55

Multiple Choice

Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent.If the Federal Reserve raises the required reserve ratio to 12 percent,then the bank will now have excess reserves of

• A)$12,000.
• B)$0.
• C)-$2,000.
• D)-$12,000.

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Definitions:

Adolescents

The transitional stage from childhood to adulthood, typically involving individuals aged between 13 and 19 years.

Elaborative Strategy

A method for increasing retention of new information by relating it to well-known information.

Rote Rehearsal

A memorization technique that involves repeating information over and over again to embed it in memory.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.