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

question 175

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 30 &\text { Deposits }&\$1,000\\\text { Loans }&\$970\\\text { Total } & \$ 1,000&\text { Total }&\$1,000 \\\hline\end{array}$
-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) $33.00
• B) $48.50
• C) $15.00
• D) $50.00

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Definitions:

Behavior

The actions or reactions of an individual, group, or system in response to external or internal stimuli.

Organism Adapt

The process by which an organism changes over time in response to its environment to improve its survival and reproduction chances.

Structuralists

Early psychologists who analyzed the basic elements of thoughts and sensations to determine the structure of conscious experience.

Phrenology

Phrenology is a now-discredited theory that suggested the shape and size of the cranium could be used to determine personality traits and mental abilities.