(Table) SCENARIO: Assume That Empathy State Bank Begins with the Balance

question 87

Multiple Choice

(Table) SCENARIO: Assume that Empathy State Bank begins with the balance sheet shown and is not fully loaned-up. If this bank is subject to a reserve requirement of 5%, how much more can it loan out if it wants to be fully loaned-up?

• A) $2,500
• B) $5,000
• C) $10,000
• D) Nothing. This bank is already fully loaned-up.

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Definitions:

Black Hills

A small, isolated mountain range rising from the Great Plains of North America in western South Dakota and extending into Wyoming, sacred to many Native American tribes and known for the discovery of gold.

Gold Seekers

Individuals who migrate or explore areas with the primary intention of discovering gold deposits.

Kill the Indian

"Kill the Indian" refers to historical policies or practices aimed at assimilating Native American individuals by erasing their indigenous cultures, identities, and languages.

Richard Henry Pratt

An American army officer best known for founding the Carlisle Indian Industrial School, advocating for the assimilation of Native Americans into European-American culture.