-The Above Table Gives the Initial Balance Sheet for Mega

question 314

Multiple Choice

-The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The required reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, what volume of loans will be made by MegaBank if the bank wants more profit and holds no excess reserves?

• A) $15.00
• B) $33.00
• C) $48.50
• D) $50.00

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Definitions:

Piaget

A reference to Jean Piaget, a Swiss psychologist known for his pioneering work in the field of cognitive development in children.

Formal Operations

The final stage in Piaget's theory of cognitive development, starting around age 12, where individuals develop the ability to think abstractly and logically.

Procedural Knowledge

Type of knowledge that is concerned with how to perform a task or activity, often manifested as skills or know-how.

Declarative Knowledge

Knowledge that can be consciously recalled, such as facts and events.