Scenario 29-1. The Monetary Policy of Namdian Is Determined by the Namdian

question 92

Multiple Choice

Scenario 29-1.
The monetary policy of Namdian is determined by the Namdian Central Bank.The local currency is the dia.Namdian banks collectively hold 100 million dias of required reserves,25 million dias of excess reserves,250 million dias of Namdian Treasury Bonds,and their customers hold 1,000 million dias of deposits.Namdians prefer to use only demand deposits and so the money supply consists of demand deposits.
-Refer to Scenario 29-1.Assuming the only other item Namdian banks have on their balance sheets is loans,what is the value of existing loans made by Namdian banks?

• A)625 million dias
• B)875 million dias
• C)1,125 million dias
• D)None of the above is correct.

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Definitions:

Type 2 Diabetes Mellitus

Type 2 Diabetes Mellitus is a chronic condition that affects the way the body processes blood sugar (glucose), characterized by insulin resistance or a lack of insulin.

Insulin-Triggering Foods

Foods that cause the pancreas to release insulin, a hormone that helps regulate blood sugar levels.

Insulin Receptors

Proteins on the surface of cells that bind insulin, triggering the cell to absorb glucose from the bloodstream.

Energy Source

Any substance or system that provides power to operate or perform work, typically through chemical, electrical, or mechanical means.