1. A bank is in compliance with its 10% reserve requirement. If the bank has deposits of $10,000,000, what is the impact on its required reserve position?

a. has a borrowing margin in the amount of $9,000,000 b. has a borrowing margin worth $1,000,000 c. is deficient $1,000,000 in required reserves d. is deficient $9,000,000 in required reserves.

2. Bank capital to assets ratios have fallen from about 20% a hundred years ago to about 8% today.

a. true b. false

3. One of the services that a bank can obtain through correspondent banking (correspondent banking services) is to be able to carry out international financial transactions and the supply of foreign currency. a. true b. false