Bank a Has Checkable Deposits of $900,000 and Total Reserves

question 109

Multiple Choice

Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 12 percent,the bank has excess reserves of

• A) $4,000.
• B) $44,000.
• C) $13,440.
• D) $2,000.

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Definitions:

Company's Policies

Formal guidelines and rules that govern the actions, decisions, and behavior of employees and management within a company.

Day-To-Day Workings

The routine or daily operations and activities of a person, group, or organization.

Guidelines

Recommendations or principles set forth to direct actions or procedures in specific situations.

Sexual Harassment

Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe or pervasive and affects working conditions or creates a hostile work environment.