$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -In the Balance Sheet Above, the Entries Are in Millions

question 492

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 400 &\text { Deposits }&\$1,200\\\text { Loans }&\$800\\\text { Total } & \$ 1,200&\text { Total }&\$1,200 \\\hline\end{array}$
-In the balance sheet above, the entries are in millions of dollars for the FBN Bank. After FBN Bank loans the maximum amount it can, the loans have been spent, and the proceeds have been deposited in other banks, FBN Bank has excess reserves of

• A) $300 million.
• B) $200 million.
• C) $0.
• D) $100 million.

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