$\text { TBK Bank Balance Sheet A ssets }\quad\quad \text { Liabilities }$

question 239

Multiple Choice

$\text { TBK Bank Balance Sheet A ssets }\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 120 &\text { Deposits }&\$600\\\text { Loans } & 580 &\text { Net worth }&100\\\text { Total assets } \quad\quad\quad\quad\quad\quad\quad& \$ 700&\text { Total assets }&\$700 \\\hline\end{array}$
-The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank?s desired reserves?

• A) $175
• B) $150
• C) 20 percent
• D) $120

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Definitions:

Demand Decrease

A reduction in the quantity of a good or service that consumers are willing and able to purchase at various prices.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specific period.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level.

Equilibrium

A market condition in which the equilibrium of supply and demand leads to price stability.