-The Above Table Gives the Initial Balance Sheet for Mega

question 133

Multiple Choice

-The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, what volume of loans will be made by MegaBank if the bank wants more profit and holds no excess reserves?

• A) $48.50
• B) $33.00
• C) $15.00
• D) $50.00

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Definitions:

Obedience

The act of following orders or complying with instructions, often from a figure of authority, reflecting the degree of control or influence exerted over individuals or groups.

Amplification

The process of increasing the magnitude or intensity of something, often used in the context of sound, signals, or even ideas.

Condoning

Condoning refers to the act of overlooking, forgiving, or disregarding an offense without criticism or punishment.

Verbalize

To express thoughts, feelings, or information in spoken words or articulate speech.