Table 9-5 Bolton Bank: Partial Balance Sheet

question 177

Multiple Choice

Table 9-5
Bolton Bank: Partial Balance Sheet
(All figures in $ million)

-Refer to Table 9-5. The required reserve ratio is 10%. What is the maximum amount of new loans that Bolton bank can create and by how much can Bolton initially increase the money supply, assuming that newly created deposits are transferred to another bank?

• A) $30 million; $30 million
• B) $70 million; $30 million
• C) $70 million; $70 million
• D) $70 million; $700 million

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Definitions:

Interpersonal Conflicts

Disagreements or disputes between individuals, often arising from differences in views, values, or interests.

Administrative Orbiting

Delaying decision making or action in bureaucracy by endlessly circulating information or queries without resolution.

Secrecy

The act of keeping information hidden from others, often to protect privacy or maintain confidentiality.

Personal Factors

Individual characteristics, including personality, attitudes, and skills, that influence a person's behavior and performance.