Table 29-6 ​
-Refer to Table 29-6

question 149

Multiple Choice

Table 29-6
$$\begin{array}{l}\text { Metropolis National Bank }\\\begin{array} { l l | l l } & \text { Assets } & { \text { Liabilities } } \\\hline \text { Reserves } & \$ 60,000 & \text { Deposits } & \$ 500,000 \\\text { Loans } & 440,000 & &\end{array}\end{array}$$ ​
-Refer to Table 29-6. Metropolis National Bank is holding 2% of its deposits as excess reserves. Assume that no banks in the economy want to maintain holdings of excess reserves and that people only hold deposits and no currency. The Fed makes open market purchases of $10,000. The person who sold bonds to the Fed deposits all the funds in Metropolis National Bank. If the bank now loans out all its excess reserves, by how much will the money supply increase?

• A)$190,000
• B)$200,000
• C)$240,000
• D)$220,000

Learn about the storage capacity of long-term memory and strategies for encoding information.

Understand the impact of packaging and branding decisions on consumer perceptions of quality.

Comprehend the role and importance of social media in nonprofit marketing.

Recognize the value and categorization of different types of brands including private labels and global brands.

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Definitions:

Price Subsidy

A financial assistance given by the government to lower the price of a product or service to encourage its consumption or production.

Quantity Control

Regulatory measures or policies aimed at limiting the amount of goods produced, supplied, or available in a market.

Lower Limit

The smallest value that a given set, statistical sample, or data category can take on or be assigned.

Upper Limit

The maximum level or value that can be reached or is allowable in a given context.