A Bank Has $7 Million in Checkable Deposits and $1

question 133

Multiple Choice

A bank has $7 million in checkable deposits and $1.2 million in total reserves.If the required reserve ratio is 10 percent,then the bank has

• A) required reserves of $700,000.
• B) excess reserves of $500,000.
• C) excess reserves of $1,080,000.
• D) required reserves of $120,000.
• E) a and b

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Definitions:

Culturally Sensitive

An approach that recognizes, respects, and incorporates the importance of culture and cultural differences in all aspects of life.

Socioeconomic

Pertaining to or involving both social and economic factors, often in the context of an individual's or group's position within a society.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Experiential Avoidance

A psychological concept involving the attempt to avoid thoughts, feelings, memories, physical sensations, and other internal experiences even when doing so causes harm.