Solved

If a Bank Holds $20,000 in Desired Reserves in Order

Question 23

Multiple Choice

If a bank holds $20,000 in desired reserves in order to meet a desired reserve ratio of 40 percent,demand deposits must equal


A) $20,000.
B) $40,000.
C) $50,000.
D) $100,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: Table 13-1
Table 13-1 </p></div><svg width=

Q19: Desired reserves consist of
A)deposits in the Bank

Q20: Economists generally agree that there is a

Q22: A bank with $200 million in deposits

Q24: The desired reserve requirement for commercial banks
A)is

Q25: Table 13-4
Table 13-4 </p></div><svg width=

Q26: When banks have excess reserves,their reserve holdings

Q27: With the fractional banking system in Canada,a

Q28: Table 13-4
Table 13-4 </p></div><svg width=

Q277: Suppose a bank has $1,500,000 in deposits

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents