The Following Balance Sheet Is for the First National Bank

question 83

Multiple Choice

The following balance sheet is for the First National Bank.Assume the desired reserve ratio is 15 percent. Refer to the above data, this chartered bank has excess reserves of:

• A)$15,000
• B)$18,000
• C)$27,000
• D)$32,000

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Definitions:

Quantity Purchased

The total amount of a good or service bought by consumers at a specific price level.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding everything else constant.

College Income

The earnings received from work or investments by someone who is attending college or the revenue generated by colleges through tuition, donations, and grants.

Cross-Price Elasticity

A measure indicating how the demand for one product changes in response to a price change of another product.