$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -The Above Table Gives the Initial Balance Sheet for Mini

question 371

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 100 &\text { Deposits }&\$400\\\text { Loans } & 600 &\text { Net worth }&\$300\\\text { Total assets } & \$ 700&\text { Total assets }&\$700 \\\hline\end{array}$
-The above table gives the initial balance sheet for Mini Bank. Mini Bank?s balance sheet is such that it will make

• A) you cannot predict what the bank will do from this balance sheet.
• B) more loans.
• C) no change in its lending.
• D) fewer loans.

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