$\text { University National Bank Balance Sheet Assets}\quad \text { Liabilities }$

question 61

Multiple Choice

$\text { University National Bank Balance Sheet Assets}\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad & \$ 320 &\text { Deposits }&\$440\\\text { Loans }&\$120\\\text { Total assets } & \$ 440&\text { Total liabilities }&\$440 \\\hline\end{array}$
-The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What would be the total increase in loans at this bank if all excess reserves were loaned out?

• A) $1,160 million
• B) $600 million
• C) $0
• D) $232 million

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, showing the profitability of sales before other operating expenses are deducted.

Cost of Goods

The total direct costs attributable to the production of goods sold by a company, including materials and labor.

Cost of Goods Manufactured

The aggregate expense of finished goods within a certain timeframe, encompassing materials, workforce, and indirect costs.

Work in Process Inventory

Inventory at various stages of production, not yet completed but undergoing manufacturing processes.