Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. If the original balance sheet was for the commercial banking system, rather than a single bank, loans and deposits could have been expanded by a maximum of approximately:
A. $120,000.
B. $213,333.
C. $415,373.
D. $333,500.
Answer: B
You might also like to view...
Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on:
a. efficiency. b. consumer surplus. c. economic profit in the long run.
Which of the following sayings best represents the concept of opportunity costs?
a. "A glass can be half empty or half full." b. "When in Rome, do as the Romans do." c. "There is no such thing as a free lunch." d. "No taxation without representation." e. "What's up?"
Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase. b. Both the equilibrium wage and quantity decrease. c. The equilibrium wage increases, and the equilibrium quantity decreases. d. The equilibrium wage decreases, and the equilibrium quantity increases.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The ________ imposed as a result of producing the efficient level of cars is $250.
A. marginal social cost B. marginal social benefit C. total damage D. marginal private cost