Learning Path
Question & Answer
Choose the Best Answer
2 → 1 → 3 → 4
1 → 2 → 3 → 4
3 → 2 → 1 → 4
2 → 3 → 1 → 4
Understanding the Answer
Let's break down why this is correct
First the bank looks at how much money customers have deposited. Other options are incorrect because This choice assumes the bank can calculate how much must stay in the bank before it even knows how much money the customers have; It says the bank should find out how much extra it has before it knows how much customers have deposited.
Key Concepts
Commercial Bank Reserves
easy level question
understand
Deep Dive: Commercial Bank Reserves
Master the fundamentals
Definition
Commercial Bank Reserves involves understanding how banks manage their reserves, including required reserves and excess reserves. This topic is crucial in determining a bank's capacity to lend and its adherence to reserve requirements set by regulatory authorities.
Topic Definition
Commercial Bank Reserves involves understanding how banks manage their reserves, including required reserves and excess reserves. This topic is crucial in determining a bank's capacity to lend and its adherence to reserve requirements set by regulatory authorities.
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