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

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Describes a person who is outgoing, sociable, and derives energy from interacting with other people.

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The extent to which an individual comes into contact with alcohol, affecting their physiological and psychological state.