Answer:
In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. FALSE.
Banks keep only a portion of the customer deposits in the bank vault. A small portion is kept with the Fed called the Reserve Requirement.
Banks typically loan out a portion of customer deposits. TRUE.
Banks only loan out the portion of customer deposits that they did not leave with the Fed.
Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. TRUE.
When too many people try to withdraw from a bank, the bank might not meet these obligations because they loaned out money to people and those people were not yet due to pay back. This is a bank run.
The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. TRUE.
The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. FALSE.
As explained in the first paragraph, the Fed requires that banks keep a portion of customer deposits with the Fed instead of the total value of customer deposits.
Answer:
$200 loss
Explanation:
Long call profit = Max [0, ($123 - $120)(100)] - $500 = -$200.
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The product cost in US dollars given the exchange rate of bitcoins per dollar is $500.
<h3>What is the product cost in US dollars?</h3>
The exchange rate is the rate at which one currency is exchanged for another currency. In this question, 1 dollar is equivalent to 0.0035.
$1 = 0.0035 bitcoins
1.75 / 0.0035 = $500
To learn more about exchange rate, please check: brainly.com/question/25780725
