Scenario 29-1 The Monetary Policy of Tazi Is Controlled by the Country's

question 91

Multiple Choice

Scenario 29-1
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the Tazian dollar. Aggregate banking statistics show that collectively the banks of Tazi hold $375 million of required reserves, $225 million of excess reserves, have issued $7,500 million of deposits, and hold $750 million of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 29-1. Assuming the only other thing Tazian banks have on their balance sheets is loans, what is the value of existing loans made by Tazian banks?

• A)$6,150 million
• B)$6,900 million
• C)$7,200 million
• D)$6,000 million

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Definitions:

Characteristic Stretch

Specific vibrations in molecules, observed in infrared spectroscopy, that are associated with particular functional groups and bonds within the molecule.

Mass/Charge

The ratio of an ion's mass to its charge, often used in mass spectrometry for ion identification.

X-axis

The horizontal axis in a graph or chart, typically used to represent the independent variable in data sets.

Relative Abundance

The proportion of a particular isotope or element present in a mixture or collection, frequently expressed as a percentage of total abundance.