Consolidated Balance Sheet for the Chartered Banking System

question 114

Multiple Choice

Consolidated balance sheet for the chartered banking system.Assume the desired reserve ratio is 10 percent.All figures are in billions. Refer to the above information.The chartered banking system has excess reserves of:

• A)$0 billion.
• B)$30 billion.
• C)$60 billion.
• D)$70 billion.

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Definitions:

Truth-wins Rule

A principle stating that the correct or best idea, argument, or proposal among those competing will ultimately be adopted or accepted.

Intuition

Gathering information through a “sixth sense” and focusing on what could be.

Analytic Thinking

The systematic examination of complex ideas, issues, or problems using logical reasoning and critical analysis to break them down into component parts.

Logical Reasoning

The process of using a structured, systematic approach to arrive at conclusions or solve problems based on valid premises.